Ondrej Krcal (Masaryk University)

Real consequences matter: why hypothetical biases in the valuation of time
persist even in controlled lab experiments

Abstract

In a controlled lab experiment, we investigate hypothetical biases in the value of time by comparing
stated preference (SP) and revealed preference (RP) values attached to unexpected waiting times.
The SP and RP choice sets are identical in terms of design with the only difference being that the
RP choices have real consequences in terms of unexpected waiting times and monetary incentives.
We find a substantial hypothetical bias with the average SP value of time being only 70% of the
corresponding RP value. The bias is mainly driven by participants who have scheduling constraints
during the time of the unexpected wait. Scheduling constraints are taken into account to a much
lesser extent in the SP setting than in the RP setting, presumably because only in the latter, the
consequences of ignoring them are costly. We find evidence that this e ect is stronger for persons
with relatively low cognitive ability.

Paper

For any information please contact J. Kovarik

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