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Measuring Discounting without Measuring Utility

Author

Listed:
  • Arthur E. Attema
  • Han Bleichrodt
  • Yu Gao
  • Zhenxing Huang
  • Peter P. Wakker

Abstract

We introduce a new method to measure the temporal discounting of money. Unlike preceding methods, our method requires neither knowledge nor measurement of utility. It is easier to implement, clearer to subjects, and requires fewer measurements than existing methods.

Suggested Citation

  • Arthur E. Attema & Han Bleichrodt & Yu Gao & Zhenxing Huang & Peter P. Wakker, 2016. "Measuring Discounting without Measuring Utility," American Economic Review, American Economic Association, vol. 106(6), pages 1476-1494, June.
    • Handle: RePEc:aea:aecrev:v:106:y:2016:i:6:p:1476-94
    Note: DOI: 10.1257/aer.20150208
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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