October 2017
Article
Management Science

Observability Increases the Demand for Commitment Devices

By: Christine L Exley and Jeffrey K. Naecker

Format:Print

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

Motivation And Incentives; Behavior; Decision Choices And Conditions; Attitudes

Citation

Exley, Christine L., and Jeffrey K. Naecker. "Observability Increases the Demand for Commitment Devices." Management Science 63, no. 10 (October 2017): 3262–3267.