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Beliefs as a Means of Self-Control? Evidence from a Dynamic Student Survey

Author

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  • König, Tobias

    (HU Berlin)

  • Schweighofer-Kodritsch, Sebastian

    (HU Berlin and WZB Berlin)

  • Weizsäcker, Georg

    (HU Berlin)

Abstract

We repeatedly elicit beliefs about the returns to study effort in a panel survey of students of a large university course. A behavioral model of quasi-hyperbolic discounting and malleable beliefs yields the prediction that the dynamics of return beliefs mirrors the importance of exerting self-control, such that return expectations first increase as the exam approaches, and then sharply drop post-exam. Exploiting variation in exam timing to control for common information shocks, we find this prediction confirmed: average subjective expections of returns increase by about 20% over the period before the exam, and drop by about the same amount afterwards.

Suggested Citation

  • König, Tobias & Schweighofer-Kodritsch, Sebastian & Weizsäcker, Georg, 2018. "Beliefs as a Means of Self-Control? Evidence from a Dynamic Student Survey," Rationality and Competition Discussion Paper Series 123, CRC TRR 190 Rationality and Competition.
    • Handle: RePEc:rco:dpaper:123
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    References listed on IDEAS

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    Cited by:

    1. Sebastian Schweighofer-Kodritsch, 2024. "Bounded Rationality, Beliefs, and Behavior," Berlin School of Economics Discussion Papers 0037, Berlin School of Economics.

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    More about this item

    Keywords

    belief elicitation; return to study effort; dynamic belief patterns;
    All these keywords.

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education

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