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An experiment on temptation and attitude towards paternalism

Author

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  • Lukasz Wozny
  • Michal Krawczyk

Abstract

In this project we investigate experimentally the link between self-control and attitude towards paternalism in a principal-agent framework. This allows us to distinguish between models of costly self-control and models of time inconsistency, which often make identical predictions in other contexts. We invite our subjects for a free lunch: a burger or a turkey. We verify in a pre-test that the burger is considered (much) more tasty and tempting, while the turkey is seen as healthier. In the experiment proper we observe incentivized choices of four types: what menus (must eat burger; must eat turkey; your choice: burger or turkey) subjects assign to another; how they reward each of these menu choices yet another participant made for them; which of the two dishes they pick on the spot (if given the choice); whether they want to pre-commit to a choice of dish for a future session. Similarly to some recent experimental results we find a significant fraction of subjects willing to selfcommit. We also observe non-trivial sets of individuals who reward highly a restricted choice and paternalistically restrict other’s choice. Moreover, there is a strong link between these three tendencies, suggesting a common thread underlying the use of commitment devices and paternalistic behavior as well as approval thereof in environments involving temptations. These findings are consistent with the models of costly self-control rather than time inconsistency.

Suggested Citation

  • Lukasz Wozny & Michal Krawczyk, 2016. "An experiment on temptation and attitude towards paternalism," KAE Working Papers 2016-018, Warsaw School of Economics, Collegium of Economic Analysis.
  • Handle: RePEc:sgh:kaewps:2016018
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    File URL: http://kolegia.sgh.waw.pl/pl/KAE/Documents/WorkingPapersKAE/WPKAE_2016_018.pdf
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    References listed on IDEAS

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    Cited by:

    1. Sandro Ambuehl & B. Douglas Bernheim & Axel Ockenfels, 2019. "Projective Paternalism," NBER Working Papers 26119, National Bureau of Economic Research, Inc.
    2. Karen Evelyn Hauge & Snorre Kverndokk & Andreas Lange, 2021. "Why People Oppose Trade Institutions - On Morality, Fairness and Risky Actions," CESifo Working Paper Series 9456, CESifo.
    3. Guilherme Lichand & Juliette Thibaud, 2020. "Parent-bias," ECON - Working Papers 369, Department of Economics - University of Zurich, revised Jun 2022.

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    More about this item

    Keywords

    temptation; time consistency; self control; paternalism; experiment;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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