Measuring Preferences Over Intertemporal Profiles

Sun, Chen (13. Februar 2023): Measuring Preferences Over Intertemporal Profiles. Collaborative Research Center Transregio 190, Discussion Paper No. 386

Abstract

Growing evidence indicates that utility over time is different from utility under risk. Hence, measuring intertemporal preferences (discounting and utility) exclusively from intertemporal choices is desirable. We develop a simple method for measuring intertemporal preferences. The method is parameter-free in both discounting and utility, and it allows a wider range of models to be measured than preceding methods. It is easy to implement, clear to subjects, incentive compatible, and does not require more measurements than existing methods if identical assumptions are imposed. In an experiment, we illustrate how the method can be used to test recent models with unconventional assumptions non-parametrically.

• Dokumententyp: Paper
• Keywords: measuring time preferences; intertemporal profile; parameter-free
• Fakultät: Volkswirtschaft > Collaborative Research Center Transregio "Rationality and Competition"
• Themengebiete: 300 Sozialwissenschaften > 330 Wirtschaft
• JEL Classification: C91, D12, D91
• Sprache: Englisch