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Herweg, Fabian; Müller, Daniel (2008): On the value of deadlines. Bonn econ discussion papers, 2008,3
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Earlier work has shown that procrastination can be explained by quasihyperbolic discounting. We present a model of effort choice over time that shifts the focus away from completion to performance on a single task. We show that quasi-hyperbolic discounting is detrimental for performance. More intrestingly, we find that being aware of the own self-control problems not necessarily increases performance. Extending this framework to a multi-task model, we show that deadlines help an agent to structure his workload more efficiently, which in turn leads to better performance. Moreover, being restricted by deadlines increases a quasi-hyperbolic discounter’s well-being. Thus, we give a theoretical underpinning for recent empirical evidence and numerous casual observations.