The Allocation of Time in Decision-Making

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The Allocation of Time in Decision-Making

Show simple item record Laibson, David I. Schuldt, Jonathan P. Chabris, Christopher F Morris, Carrie L. Taubinsky, Dmitry 2010-10-14T14:18:18Z 2009
dc.identifier.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. en_US
dc.identifier.issn 1542-4766 en_US
dc.description.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. en_US
dc.description.sponsorship Economics en_US
dc.language.iso en_US en_US
dc.publisher Massachusetts Institute of Technology Press en_US
dc.relation.isversionof en_US
dc.relation.isversionof doi:10.1162/JEEA.2009.7.2-3.628 en_US
dc.relation.hasversion en_US
dc.relation.hasversion;h=repec:tpr:jeurec:v:7:y:2009:i:2-3:p:628-637 en_US
dash.license OAP
dc.title The Allocation of Time in Decision-Making en_US
dc.type Journal Article en_US
dc.description.version Author's Original en_US
dc.relation.journal Journal- European Economic Association en_US Laibson, David I. 2010-10-14T14:18:18Z

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