Don’T Fear the Meter: How Time Limits Bias Employment Contract Choices

In six incentive-compatible studies, we find a biased and costly preference for flat-fee contracts (vs. time-metered contracts), particularly under longer time limits. This occurs because of biased time estimates, not risk preferences or inferences. The bias occurs whether workers’ product quality is fixed or variable, and persists for experienced managers.



Citation:

Indranil Goswami and Oleg Urminsky (2017) ,"Don’T Fear the Meter: How Time Limits Bias Employment Contract Choices", in NA - Advances in Consumer Research Volume 45, eds. Ayelet Gneezy, Vladas Griskevicius, and Patti Williams, Duluth, MN : Association for Consumer Research, Pages: 96-100.

Authors

Indranil Goswami, University at Buffalo, Canada
Oleg Urminsky, University of Chicago, USA



Volume

NA - Advances in Consumer Research Volume 45 | 2017



Share Proceeding

Featured papers

See More

Featured

When Too much “I” is Bad for “Us”: The Detrimental Effect of Selfie on Self -Brand Connection.

MEHAK BHARTI, Nanyang Technological University, Singapore
Sharon Ng, Nanyang Technological University, Singapore

Read More

Featured

Names Are the Mirrors of the Soul: The Role of Possessive Brand Names in Brand Evaluations

Marina Puzakova, Lehigh University
Mansur Khamitov, Nanyang Technological University, Singapore

Read More

Featured

Powerful Buy Time: Why Social Power Leads to Prioritizing Time over Money

Myungjin Chung, University of Texas at Arlington
Ritesh Saini, University of Texas at Arlington

Read More

Engage with Us

Becoming an Association for Consumer Research member is simple. Membership in ACR is relatively inexpensive, but brings significant benefits to its members.