Obesity and Hyperbolic Discounting: An Experimental Analysis
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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