Obesity and Hyperbolic Discounting: An Experimental Analysis

Models of rational addiction suggest that obesity is consistent with time-consistent preferences. Behavioral economists maintain that addictions such as alcoholism, smoking and over-eating represent examples of present-bias in decision making that is fundamentally irrational. In this article, conduct an experiment to test whether individual discount schedules are time-consistent and whether discount rates are higher for subjects who exhibit patterns of risky behavior. Our results show that discount functions are quasi-hyperbolic in shape, and that obesity and drinking are positively related to the discount rate. Anti-obesity policy, therefore, would be best directed to informing individuals as to the long-term implications of short-term gratification, rather than taxing foods directly


Issue Date:
2012-08
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/134219
Published in:
Journal of Agricultural and Resource Economics, Volume 37, Number 2
Page range:
181-198
Total Pages:
18
Series Statement:
Journal of Agricultural and Resource Economics
37-2




 Record created 2017-04-01, last modified 2017-08-26

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