Measuring Preferences Over Intertemporal Profiles

Arbeitspapier

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. It is parameter-free in both discounting and utility, and 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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Paper ; No. 386

Classification and Topics

• Classification: Wirtschaft ; Design of Experiments: Laboratory, Individual ; Consumer Economics: Empirical Analysis ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡
• Subject: measuring time preferences ; intertemporal profile ; parameter-free

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Sun, Chen
• Event: Veröffentlichung
• (who): Ludwig-Maximilians-Universität München und Humboldt-Universität zu Berlin, Collaborative Research Center Transregio 190 - Rationality and Competition
• (where): München und Berlin
• (when): 2023

Further information

• Handle: http://hdl.handle.net/10419/282078
• Last update: 10.03.2025, 11:45 AM CET