Dynamic Inconsistency in Food Choice: Experimental Evidence from a Food Desert

Abstract

Despite the great deal of research on dynamic inconsistency in time preferences, few studies have ventured into investigating the question in a natural context. To address this gap, we conduct a natural field experiment with over 200 customers at a grocery store to investigate dynamic inconsistency and the demand for commitment in food choice. Over a 3 week time period, subjects are invited to allocate and re-allocate food items received as part of a grocery delivery program. We observe substantial dynamic inconsistency in our experiment, as well as a demand for commitment among a non-negligible number of subjects. Interestingly, individuals who demand commitment are more likely to be dynamically consistent in their prior behavior. For academics, our work provides direct evidence of dynamic inconsistency in consumption choices in the field and points towards potential extensions to models of temptation. For policy-makers, our findings provide insights on innovations to alter food choices.

Keywords: temptation, dynamic inconsistency, commitment demand, field experiment

JEL Classification: C91, D12, D81