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Economic Preferences and Obesity: Evidence from a Clinical Lab-in-Field Experiment

Author

Listed:
  • Pastore, Chiara

    (University of York)

  • Schurer, Stefanie

    (University of Sydney)

  • Tymula, Agnieszka

    (University of Sydney)

  • Fuller, Nicholas

    (University of Sydney)

  • Caterson, Ian

    (University of Sydney)

Abstract

We study economic decision-making of 284 people with obesity and pre-diabetes who participated in a 6-months randomised controlled trial to control weight and prevent diabetes. To elicit preferences, we use incentive-compatible experimental tasks that participants completed during their medical screening examination. We find that, on average, participants are risk averse, show no evidence of present bias, and have impatience levels comparable to healthy samples described in the international literature. Variations in present bias and impatience are not significantly associated with variations in markers of obesity. But we find a significant negative association between risk tolerance and BMI and other markers of obesity for women. A 1 standard deviation increase in risk tolerance is associated with a 0.2 standard deviation drop in BMI and waist circumference. Impatience moderates the link between risk tolerance and obesity. We replicate the key finding of interaction effects between risk and time preferences using survey data from a nationally representative sample of 6,281 Australians with similar characteristics. Deviating markedly from the literature, we conclude that risk tolerance brings benefits for health outcomes if combined with patience in this understudied but highly policy-relevant population.

Suggested Citation

  • Pastore, Chiara & Schurer, Stefanie & Tymula, Agnieszka & Fuller, Nicholas & Caterson, Ian, 2020. "Economic Preferences and Obesity: Evidence from a Clinical Lab-in-Field Experiment," IZA Discussion Papers 13915, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13915
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    More about this item

    Keywords

    incentive-compatible economic experiment; obesity; risk tolerance; impatience; lab-in-field experiment;
    All these keywords.

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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