Munich Personal RePEc Archive

Revealed time-preference

Dziewulski, Pawel (2014): Revealed time-preference.

[img]
Preview
PDF
MPRA_paper_56596.pdf

Download (450kB) | Preview

Abstract

Consider an experiment in which subjects are asked to choose between pairs consisting of a monetary payment and a time-delay at which the payment is delivered. Given a finite set of observations, under what conditions the choices of an individual agent can be rationalised by a discounted utility function? We develop an axiomatic characterisation of time-preference with various forms of discounting, including weakly present-biased, quasi-hyperbolic, and exponential, and determine the testable restrictions for each specification. Moreover, we discuss identification issues which may arise in this class of experiments.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.