Publications
Publications
- 2016
- HBS Working Paper Series
Observability Increases the Demand for Commitment Devices
By: Christine L. Exley and Jeffrey K. Naecker
Abstract
Previous research often interprets the choice to restrict one's future opportunity set as evidence for sophisticated time-inconsistency. We propose an additional mechanism that may contribute to the demand for commitment technology: the desire to signal to others. We present a field experiment where participants can choose to give up money if they do not follow through with an action. When commitment choices are made public rather than kept private, we find significantly higher uptake rates.
Keywords
Citation
Exley, Christine L., and Jeffrey K. Naecker. "Observability Increases the Demand for Commitment Devices." Harvard Business School Working Paper, No. 16-064, November 2015. (Revised March 2016.)