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Choice reversal without temptation: A dynamic experiment on time preferences

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  • Marco Casari
  • Davide Dragone

Abstract

We study intertemporal choices through an experiment run over multiple dates and we show that intertemporal behavior is affected by additional drivers beyond impatience and present-biased preferences. By eliciting a subject’s plan and tracking its implementation over time, this dynamic design helps our understanding of time inconsistency through the identification and measurement of three notions of choice reversal in intertemporal behavior. In the experiment, there is widespread choice reversal and demand for flexibility. Neither the usual exponential nor hyperbolic discounting models can account for the observed behavior. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Marco Casari & Davide Dragone, 2015. "Choice reversal without temptation: A dynamic experiment on time preferences," Journal of Risk and Uncertainty, Springer, vol. 50(2), pages 119-140, April.
    • Handle: RePEc:kap:jrisku:v:50:y:2015:i:2:p:119-140
    DOI: 10.1007/s11166-015-9211-x
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    Cited by:

    1. Laurent Denant-Boemont & Enrico Diecidue & Olivier l’Haridon, 2017. "Patience and time consistency in collective decisions," Experimental Economics, Springer;Economic Science Association, vol. 20(1), pages 181-208, March.
    2. Akin, Zafer & Yavas, Abdullah, 2023. "Elicited Time Preferences and Behavior in Long-Run Projects," MPRA Paper 117133, University Library of Munich, Germany.
    3. Bigoni, Maria & Dragone, Davide & Luchini, Stephane & Prati, Alberto, 2021. "Estimating time preferences for leisure," CEPR Discussion Papers 16367, C.E.P.R. Discussion Papers.
    4. Zhang, Qing & Greiner, Ben, 2021. "Time inconsistency, sophistication, and commitment: An experimental study," Economics Letters, Elsevier, vol. 206(C).
    5. Bisin, Alberto & Hyndman, Kyle, 2020. "Present-bias, procrastination and deadlines in a field experiment," Games and Economic Behavior, Elsevier, vol. 119(C), pages 339-357.
    6. Mohammad Mehdi Mousavi & Mahdi Kohan Sefidi & Shirin Allahyarkhani, 2024. "Awareness of self-control," Papers 2402.11072, arXiv.org.
    7. Toussaert, Séverine, 2018. "Eliciting temptation and self-control through menu choices: a lab experiment," LSE Research Online Documents on Economics 88107, London School of Economics and Political Science, LSE Library.
    8. Séverine Toussaert, 2018. "Eliciting Temptation and Self†Control Through Menu Choices: A Lab Experiment," Econometrica, Econometric Society, vol. 86(3), pages 859-889, May.
    9. Bhatia, Sudeep & Crawford, Megan M & McDonald, Rebecca Louise & Moreno, Miguel A. & Read, Daniel, 2021. "Inconsistent Planning and the Allocation of Tasks Over Time," OSF Preprints b4mg7, Center for Open Science.

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    More about this item

    Keywords

    Longitudinal experiment; Time inconsistency; Self-control; Risk; Real-effort experiment; C91; D01; D80; D90;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

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