Experimental Design
We will conduct an experiment where we induce time shocks ourselves. Each subject will complete the experiment over four sessions. We will inform subjects that they will be offered the opportunity to complete real-effort tasks at a piece rate in sessions two and four of the experiment.
In the first session of the experiment, subjects start by competing in a contest. The contest will be between pairs of participants and will involve completing real-effort tasks (an intelligence quiz). Subjects will be told that the winner of the contest will receive easier tasks in a future session, while the loser will receive more difficult tasks. After the contest, we will elicit each subject's beliefs about the likelihood that she has won the contest. The subjects will then make a series of choices: (1) how many unpaid tasks they would be willing to complete in order to increase the likelihood that their choices in the first session are implemented, (2) how many tasks they would commit to doing in session two at various piece rates _without_ knowing the outcome of the contest, (3) how many tasks they would commit to doing in session two at various piece rates assuming that they win the contest, and (4) how many tasks they would commit to doing in session two at various piece rates assuming that they lose the contest.
In the second session of the experiment, which will be completed at least 24 hours after the first, subjects will again choose (1) how many tasks they would commit to doing in this session at various piece rates _without_ knowing the outcome of the contest, (2) how many tasks they would commit to doing in this session at various piece rates assuming that they win the contest, and (3) how many tasks they would commit to doing in this session at various piece rates assuming that they lose the contest. The subject will then learn the outcome of the contest, which piece rate has been randomly selected to be implemented, and which of their choices (session one or session two, and conditional on contest outcome or not) will be implemented. Then they will be required to complete their chosen number of tasks.
The third and fourth sessions of the experiment will be completed in the week following the first two sessions, and will involve the same series of choices with one added step. After completing the contest but before choosing whether they want to commit, subjects will be randomly divided into thirds, with each third receiving one information treatment. In the _no information_ (control) condition, subjects will proceed immediately to the commitment decision. In the _contest information_ treatment, subjects will receive information of the form ``We also matched you with two other randomly drawn participants from the previous study, and you (lost against both/won against one/won against both) of them.'' In the _task information_ treatment, subjects will receive information of the form ``In Session 2, for a payment rate of Z per set and (knowing the sets would be easy/knowing the sets would be hard/not knowing whether the sets would be easy or hard), you agreed to complete X1 sets. In Session 3, in the same setting, you agreed to complete X2 sets.''