How to measure time preferences: An experimental comparison of three methods
Journal Title: Judgment and Decision Making - Year 2013, Vol 8, Issue 3
Abstract
In two studies, time preferences for financial gains and losses at delays of up to 50 years were elicited using three different methods: matching, fixed-sequence choice titration, and a dynamic “staircase” choice method. Matching was found to create fewer demand characteristics and to produce better fits with the hyperbolic model of discounting. The choice-based measures better predicted real-world outcomes such as smoking and payment of credit card debt. No consistent advantages were found for the dynamic staircase method over fixed-sequence titration.
Authors and Affiliations
David J. Hardisty, Katherine F. Thompson, David H. Krantz and Elke U. Weber Supplement
Keywords
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