Working Paper: CEPR ID: DP13806
Authors: Julia Nafziger; Alexander K Koch
Abstract: We study theoretically and experimentally how the bracketing of non-binding goals in a repeated task affects the level of goals that people set for themselves, the actual effort provided, and the pattern of effort over time. In our model, a sophisticated or (partially) naive individual faces a motivational problem because of present-biased preferences. Using an online, real-effort experiment that varied whether subjects set separate daily goals for how much to work over a one-week period or one weekly goal, we find support for the theoretical predictions. Subjects with daily goals set higher goals in aggregate and provided more effort than those with a weekly goal. The higher effort was driven by the higher goals set. Additional treatments complemented internal commitment through goals with an externally enforced minimum work requirement to get started working each day. Here, average performance dropped because of high dropout.
Keywords: self-control; goals; narrow bracketing; commitment; real effort; online experiment
JEL Codes: D03; D81; D91
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| type of goal setting (L21) | level of effort exerted (D29) |
| type of goal setting (L21) | goal level (L21) |
| goal level (L21) | level of effort exerted (D29) |
| minimum work requirement (J38) | average performance (D29) |
| daily goals (L21) | consistent effort pattern (E32) |
| weekly goals (L21) | effort substitution problem (C60) |