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Journal of Risk and Uncertainty

, Volume 38, Issue 2, pp 117–141 | Cite as

Pre-commitment and flexibility in a time decision experiment

  • Marco CasariEmail author
Article

Abstract

An agent with dynamically inconsistent preferences may deviate from her plan of action as the future draws near. An exponential discounter may do exactly the same when facing an uncertain future. Through an experiment we compare preference-based vs. uncertainty-based explanations for choice reversal over time by eliciting choices for pre-commitment and flexibility. Evidence of widespread commitment favors a preference-based explanation.

Keywords

Experiments Intertemporal choices Dynamic consistency Commitment Flexibility Uncertainty 

JEL Classification

C91 D90 D81 

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Copyright information

© Springer Science+Business Media, LLC 2009

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of BolognaBolognaItaly

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