Highbrow films gather dust
Subtitle: time-inconsistent preferences and online DVD rentals
By: Katherine L. Milkman, Todd Rogers, Max H. Bazerman
Contributors: Rogers, Todd; Bazerman, Max H.; Harvard Business School
Edition: 4th rev.
Series: Working paper / Harvard Business School -- 07-099; Working paper (Harvard Business School) -- 07-099.
Publisher: Harvard Business School
Published: 2009
Place of publication: [Boston]
Language: eng
Number of pages: 36
Description: We report on a field study demonstrating systematic differences between the preferences people anticipate they will have over a series of options in the future and their subsequent revealed preferences over those options. Using a novel panel data set, we analyze the film rental and return patterns of a sample of online DVD rental customers over a period of four months. We predict and find that should DVDs (e.g., documentaries) are held significantly longer than want DVDs (e.g., action films) within-customer. Similarly, we also predict and find that people are more likely to rent DVDs in one order and return them in the reverse order when should DVDs are rented before want DVDs. Specifically, a 1.3% increase in the probability of a reversal in preferences (from a baseline rate of 12%) ensues if the first of two sequentially rented movies has more should and fewer want characteristics than the second film. Finally, we find that as the same customers gain more experience with online DVD rentals, the extent to which they hold should films longer than want films decreases. Our results suggest that present bias has a meaningful impact on choice in the field and that people may learn about their present bias with experience, and, as a result, gain the capacity to curb its influence.
Notes: Originally published as: Film rentals and procrastination : a study of intertemporal reversals in preferences and intrapersonal conflict. c2007.

Previous revision: 4th (September 2008) revision.

"Revised January 2009"--Publisher's website.

Includes bibliographical references.