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Overcoming Time Inconsistency with a Matched Bet: Theory and Evidence from Exercising

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  • Andrej Woerner

Abstract

This paper introduces the matched-bet mechanism. The matched bet is an easily applicable and strictly budget-balanced mechanism that aims to help people overcome time-inconsistent behavior. I show theoretically that offering a matched bet helps both sophisticated and naive procrastinators to reduce time-inconsistent behavior. A field experiment on exercising confirms the theoretical predictions: offering a matched bet has a significant positive effect on gym attendance. Self-reported procrastinators are significantly more likely to take up the matched bet. Overall, the matched bet proves a promising device to help people not to procrastinate.

Suggested Citation

  • Andrej Woerner, 2021. "Overcoming Time Inconsistency with a Matched Bet: Theory and Evidence from Exercising," CESifo Working Paper Series 9503, CESifo.
    • Handle: RePEc:ces:ceswps:_9503
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp9503.pdf
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    References listed on IDEAS

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    Cited by:

    1. Andrej Woerner & Giorgia Romagnoli & Birgit M. Probst & Nina Bartmann & Jonathan N. Cloughesy & Jan Willem Lindemans, 2021. "Should Individuals Choose Their Own Incentives? Evidence from a Mindfulness Meditation Intervention," CESifo Working Paper Series 9494, CESifo.

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    More about this item

    Keywords

    monetary incentives; market design; field experiment; health behavior;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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