On saving and investing : an experimental study of intertemporal decision making in a complex stochastic environment

Vital Anderhub, Werner Güth and Florian Knust

The experimental situation presents a complex stochastic intertemporal allocation problem. First, two initial chance moves select one of three possible termination probabilities which then determines whether "life" lasts 3,4,5, or 6 periods. Compared to Anderhub et al. (1997) participants are allowed to invest into a risky, but profitable asset. We investigate whether the willingness to invest can help to explain saving behavior, i.e. experimentally observed intertemporal decision making.

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Year of publication:	2000
Authors:	Anderhub, Vital ; Güth, Werner ; Knust, Florian
Institutions:	Sonderforschungsbereich Quantifikation und Simulation Ökonomischer Prozesse (contributor)
Publisher:	Berlin : Humboldt-Universität
Subject:	Sparen \| Savings \| Experiment \| Investitionsentscheidung \| Investment decision \| Entscheidung unter Unsicherheit \| Decision under uncertainty \| Intertemporale Allokation \| Intertemporal allocation \| Deutschland \| Germany \| Theorie \| Theory