TY - JOUR
T1 - The allocation of time in decision-making
AU - Chabris, Christopher F.
AU - Laibson, David
AU - Morris, Carrie L.
AU - Schuldt, Jonathon P.
AU - Taubinsky, Dmitry
PY - 2009/3
Y1 - 2009/3
N2 - We study the allocation of time across decision problems. If a decision-maker (1) has noisy estimates of value, (2) improves those estimates the longer she analyzes a choice problem, and (3) allocates time optimally, then the decision-maker should spend less time choosing when the value gap between two options is relatively large. To test this prediction we asked subjects to make 27 binary incentive-compatible intertemporal choices, and measure response time for each decision. Our time allocation model explains 54% of the variance in average decision time. These results support the view that decision-making is a cognitively costly activity that uses time as an input allocated according to cost-benefit principles
AB - We study the allocation of time across decision problems. If a decision-maker (1) has noisy estimates of value, (2) improves those estimates the longer she analyzes a choice problem, and (3) allocates time optimally, then the decision-maker should spend less time choosing when the value gap between two options is relatively large. To test this prediction we asked subjects to make 27 binary incentive-compatible intertemporal choices, and measure response time for each decision. Our time allocation model explains 54% of the variance in average decision time. These results support the view that decision-making is a cognitively costly activity that uses time as an input allocated according to cost-benefit principles
UR - https://www.scopus.com/pages/publications/70349585638
U2 - 10.1162/JEEA.2009.7.2-3.628
DO - 10.1162/JEEA.2009.7.2-3.628
M3 - Article
AN - SCOPUS:70349585638
SN - 1542-4766
VL - 7
SP - 628
EP - 637
JO - Journal of the European Economic Association
JF - Journal of the European Economic Association
IS - 2-3
ER -