MRes/PhD Economics
Lead Research Organisation:
London School of Economics and Political Science
Department Name: Economics
Abstract
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People |
ORCID iD |
| Jack Fisher (Student) |
| Description | There has been a long debate in economics about the prevalence of income targeting amongst individuals who decide how many hours to work on a given day. Income targeting occurs when, broadly speaking, an individual will work until they have earned an amount equal to their income target. An alternative way to determine hours of work would look something like: I work longer when the wage is high, and I work less when the wage is low. The latter form of behavior is consistent with an optimizing worker, but evidence has been found in favor of both ways. I show that behavior is in line with the latter model when the wage is salient, but workers resort to income targeting when they are not able to optimize--perhaps because they lack the information to do so. |
| Exploitation Route | It is important to see how biases, like income targeting, play out in general equilibrium. Interesting related questions include: Are there large welfare consequence for workers and consumers from income targeting? Do firms have incentives to provide the right information to workers to help them optimize? |
| Sectors | Creative Economy,Transport |
| Description | I have been collaborating with a company during my research. They have been using the behavioral insights in order to determine the driver pricing strategy. |
| First Year Of Impact | 2019 |
| Sector | Transport |
| Impact Types | Economic |