An Experiment on Time Preference and Misprediction in Unpleasant Tasks

We experimentally investigate the time-inconsistent taste for immediate gratification and future-preference misprediction. Across 7 weeks, 100 participants choose the number of unpleasant transcription tasks given various wages to complete immediately and at different future dates. Participants preferred 10-12% fewer tasks in the present compared to any future date, leading to an estimated beta of 0.83. Comparing predictions with actual immediate-work choices provides evidence against substantial sophistication, with estimates implying that participants understand no more than 24% of their present bias. Finally, we find evidence of projection bias: participants wished to complete 4-12% fewer tasks when decisions were elicited right after completing tasks rather than before.