Overcoming time inconsistency with a matched bet : etheory and evidence from exercising

Andrej Woerner

This paper introduces the matched-bet mechanism. The matched bet is an easily applicable and strictly budget-balanced mechanism that aims to help people overcome time-inconsistent behavior. I show theoretically that offering a matched bet helps both sophisticated and naive procrastinators to reduce time-inconsistent behavior. A field experiment on exercising confirms the theoretical predictions: offering a matched bet has a significant positive effect on gym attendance. Self-reported procrastinators are significantly more likely to take up the matched bet. Overall, the matched bet proves a promising device to help people not to procrastinate.

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Year of publication:	December 2021
Authors:	Woerner, Andrej
Publisher:	Munich, Germany : CESifo, Center for Economic Studies & Ifo Institute
Subject:	monetary incentives \| market design \| field experiment \| health behavior \| Experiment \| Anreiz \| Incentives \| Feldforschung \| Field research \| Zeitkonsistenz \| Time consistency \| Gesundheit \| Health \| Gesundheitsvorsorge \| Preventive care \| Glücksspiel \| Gambling