We compare three methods for the elicitation of time preferences in an experimental setting: the Becker-DeGroot-Marschak (BDM) procedure (BDM), a second price auction and the multiple price list format. The first two methods have been used rarely to elicit time preferences. Although all methods used are broadly strategically equivalent, and should induce the same 'truthful' revelation, we find that the methods do differ: the money discount rates elicited with the multiple price list tend to be higher than those elicited with the other two methods. Furthermore, there are no significant differences between the rates elicited with the BDM and the auction elicitation procedure.
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Paper provided by Computable and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia in its series CEEL Working Papers with number
0806.
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Paola Manzini & Marco Mariotti, 2007.
"Choice Over Time,"
IZA Discussion Papers
2993, Institute for the Study of Labor (IZA).
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Other versions:
Paola Manzini & Marco Mariotti, 2007.
"Choice over Time,"
Working Papers
605, Queen Mary, University of London, Department of Economics.
[Downloadable!]