The Allocation of Time in Decision-Making
| Title: | The Allocation of Time in Decision-Making |
| Author: |
Laibson, David I.; Schuldt, Jonathan P.; Chabris, Christopher F; Morris, Carrie L.; Taubinsky, Dmitry
Note: Order does not necessarily reflect citation order of authors. |
| Citation: | Chabris, Christopher F., David Laibson, Carrie L. Morris, Jonathan P. Schuldt, and Dmitry Taubinsky. 2009. The allocation of time in decision-making. Journal of the European Economic Association 7(2-3): 628-637. |
| Full Text & Related Files: |
Laibson_AllocationTime.pdf (445.4Kb; PDF) 
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| Abstract: | We study the allocation of time across decision problems. If a decision-maker (1) has noisy estimates of value, (2) improves those estimates the longer he or she analyzes a choice problem, and (3) allocates time optimally, then the decision-maker should spend less time choosing when the difference in value between two options is relatively large. To test this prediction we ask subjects to make 27 binary incentive-compatible intertemporal choices, and measure response time for each decision. Our time allocation model explains 54% of the variance in average decision time. These results support the view that decisionmaking is a cognitively costly activity that uses time as an input allocated according to cost-benefit principles. |
| Published Version: | www.mitpressjournals.org/doi/abs/10.1162/JEEA.2009.7.2-3.628 |
| Other Sources: |
http://wjh1.wjh.harvard.edu/~cfc/Chabris2008b.pdf
http://econpapers.repec.org/scripts/redir.plex?u=http%3A%2F%2Fwww.mitpressjournals.org%2Fdoi%2Fpdfplus%2F10.1162%2FJEEA.2009.7.2-3.628;h=repec:tpr:jeurec:v:7:y:2009:i:2-3:p:628-637 |
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| Citable link to this page: | http://nrs.harvard.edu/urn-3:HUL.InstRepos:4481495 |
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