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Most experimental evidence of hyperbolic discounting is based on violations of either stationarity or time consistency … reversals may however also result from time-varying discount rates. Hyperbolic discounting is an unambiguous explanation for … choice reversals only if individuals simultaneously violate both stationarity and time consistency. Our field experiment …
Persistent link: https://www.econbiz.de/10013004064
Most evidence of hyperbolic discounting is based on violations of either stationarity or time consistency as observed … discounting is a plausible explanation for choice reversals only if violations of stationarity and time consistency overlap. Our … field experiment examines the extent to which this is the case. At different points in time, the same participants allocated …
Persistent link: https://www.econbiz.de/10011307819
Research has shown that procrastination has signicant adverse effects on individuals, including lower savings and poorer health. Procrastination is typically modeled as resulting from present bias. In this paper we study an alternative: excessively optimistic beliefs about future demands on an...
Persistent link: https://www.econbiz.de/10012193799
One main motive behind lengthy prison terms for serious crime is to deter potential offenders from engaging in crime. Yet, economic theory predicts that the scope for punishment as acting as a deterrent depends on how much individuals discount future events when balancing the immediate utility...
Persistent link: https://www.econbiz.de/10010355861
Persistent link: https://www.econbiz.de/10011576682
In accounting for the phenomenon of present bias, the hyperbolic discounting and quasi-hyperbolic discounting models … have distinct predictions beyond today. We provide experimental evidence supporting diminishing rate of discounting beyond … extended present bias hypothesis with distinct present and near term bias followed by exponential discounting into the future …
Persistent link: https://www.econbiz.de/10014186935
been an open question. We conducted an experiment that explicitly distinguishes them, and confirmed the declining …
Persistent link: https://www.econbiz.de/10014053314
Standard econometric models of discrete choice (such as Fechner model of random errors, Luce’s choice model and random utility or random preference approach) are not well suited for applications to intertemporal choice. This paper proposes a new model that does not violate temporal dominance,...
Persistent link: https://www.econbiz.de/10014134808
We report results from an experiment that contrasts preferences toward the risk of what may happen (outcome risk … monetary risks identify utility independently from discounting, choices over uncertain delays of a fixed reward identify … discounting independently from utility. We replicate the widespread finding of outcome risk aversion, but — in a perfectly …
Persistent link: https://www.econbiz.de/10012908536
Hyperbolic discounting and lack of self-control are different phenomena that share the property of dynamic … these, I argue that hyperbolic discounting is a particular type of dynamically inconsistent time preferences, whereas self …
Persistent link: https://www.econbiz.de/10012910183