JLR Portrait

J. Lucas Reddinger

Research Fields

Curriculum Vita PDF, updated 2020-02-03

Email reddinger@ucsb.edu[PGP 0x4D445E28]

Selected Research

“Temptation: Immediacy and Certainty”

Abstract An option is especially tempting when it is both immediate and certain. I conduct a framed field experiment on dynamic real-effort provision to test this hypothesis and quantify the effect of risk on present-bias. Capturing the immediacy effect with dynamically inconsistent behavior requires decisions made in advance of the real-effort exertion, as well as when the exertion is imminent. Structural estimation of the quasi-hyperbolic present-bias factor β necessitates further choice data to separate risk and time preferences. The random incentive scheme is the typical incentive-compatible mechanism of choice, randomly selecting one decision for implementation. However, this mechanism necessarily introduces risk, potentially diminishing the extent or intensity of present-bias. I conduct a novel between-subject experiment that methodologically eliminates two channels of uncertainty, while still identifying the present-bias parameter. I find that the extent of present-bias is no different given certainty, but the intensity of present-bias increases dramatically from β=1.03 under uncertainty to β=0.75 under certainty. The results have broad implications for prevailing experimental methodology and the theory of risk and time preferences. JEL Codes: D03, D81, D91.

“Wage Policies, Incentive Schemes, and Motivation”