Why are time-inconsistent preferences widespread among decision makers? This paper provides a possible explanation by showing that time-inconsistent preferences could be beneficial for decision makers that work together. Time-inconsistent preferences – which are usually blamed for having...

We experimentally study strategic procrastination in a dynamic team environment. Two team members work for a finite number of periods on a joint project. The project’s success probability depends on the effort provided by both group members. Payment is conditional on finishing the project...