Framing effects in intertemporal choice: A nudge experiment

Abstract

This paper experimentally investigates the framing effects of intertemporal choice using two different elicitation modes, termed classical and penal. In the classical mode, participants are given the choice between receiving a certain amount of money, smaller and sooner, today and a higher amount, larger and later, delayed (e.g., "€55 today vs. €75 in 61 days"). This is referred to as the standard mode. In the penalty mode, the participant must give up an explicit amount of money in order to choose the smaller and sooner option (e.g., "€75 in 61 days vs. €55 today with a penalty of €20"). This is the explicit mode. We find that estimates of individual discount rates are lower in the explicit mode than in the standard mode. This result suggests that even very simple information about the amount of money one must surrender for choosing the earlier option increases delayed consumption. The finding has relevant implications for self-control and long-term planning in intertemporal choice.

Not My Job, I Do Not Want to Do It: The Effect of Illegitimate Tasks on Work Disengagement

“…Illegitimate tasks could decrease individuals’ self-control resources by creating cognitive load, triggering negative self-perceptions and negative emotions, which could lead them to a state of ego depletion and make it difficult for them to focus on work engagement, causing them to develop work disengagement. This was in line with existing research ( Faralla et al, 2017 ) which suggested that employees in a state of ego depletion were more sensitive to timely rewards and more likely to focus on short-term benefits.…”

“…Therefore, this research believed that when individuals consume their self-control resources in illegitimate tasks, they will not be able to focus on engaging in work behaviors either consciously or unconsciously, which will bring about the emergence of work disengagement. Furthermore, persons in a state of ego depletion are more sensitive to timely rewards and are more likely to focus on short-term benefits ( Faralla et al, 2017 ). This suggests that employees will keep a watchful eye on non-work behaviors that provide them with timely positive emotions or benefits than work behaviors that are characterized by “immediate input-delayed reward.” It has been found that individuals who are in ego depletion produce more behaviors against the rules and regulations ( Yam et al, 2014 ), less proactive behavior, and employees have lower task adaptability ( Deng et al, 2016 ).…”

The effect of language on economic behavior: Examining the causal link between future tense and time preference in the lab

“…The literature on the framing effect provides ample evidence suggesting that a simple alteration in one or a few words in the decision frame presented to subjects often leads to substantial behavioral changes observed from their actual choice. In the domain of intertemporal decision-making, several studies have documented the framing effect using comparable low-key interventions (Read et al 2005;Read, Frederick, and Scholten 2013;Fassbender et al 2014;Breuer and Soypak 2015;Faralla, Novarese, and Ardizzone 2017). Below are a few examples of such studies.…”

Influence of self-serving leadership on employees’ organizational deviance: a multilevel moderated mediation model

“…Some studies have also shown that ego depletion has a significant positive impact on workplace deviance (Christian and Ellis, 2011;Thau and Mitchell, 2010). In addition, subordinates in a state of ego depletion tend to show a low future-oriented style and are more sensitive to immediate returns (Faralla et al, 2017). Therefore, when the negative consequences of organizational deviance implemented by subordinates are in the future (negative evaluation of subordinates by organizations and supervisions), while the rewards are immediate (dissatisfaction is vented), such subordinates are likely to choose immediate satisfaction rather than consider the long-term impact of the future (Unger and Stahlberg, 2011).…”