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Revealed time preference

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  • Dziewulski, Paweł

Abstract

Suppose a researcher observes a finite number of preference comparisons between pairs (x,t) of rewards x delivered at time t. We provide necessary and sufficient conditions under which such a dataset can be rationalised with the most common specifications of the discounted utility model. The distinctive feature of our characterisation is that it refers to notions of stochastic dominance among empirical distributions defined over the observed rewards and time delays.

Suggested Citation

  • Dziewulski, Paweł, 2018. "Revealed time preference," Games and Economic Behavior, Elsevier, vol. 112(C), pages 67-77.
  • Handle: RePEc:eee:gamebe:v:112:y:2018:i:c:p:67-77
    DOI: 10.1016/j.geb.2018.08.004
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    References listed on IDEAS

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    Citations

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    as


    Cited by:

    1. Hiroki Nishimura & Efe A. Ok & John K.-H. Quah, 2017. "A Comprehensive Approach to Revealed Preference Theory," American Economic Review, American Economic Association, vol. 107(4), pages 1239-1263, April.
    2. Pawel Dziewulski & John Quah, 2014. "Testing for production with complementarities," Economics Series Working Papers 722, University of Oxford, Department of Economics.
    3. David Freeman, 2016. "Revealing Naïveté and Sophistication from Procrastination and Preproperation," Discussion Papers dp16-11, Department of Economics, Simon Fraser University.
    4. Federico Echenique, 2019. "New developments in revealed preference theory: decisions under risk, uncertainty, and intertemporal choice," Papers 1908.07561, arXiv.org, revised Dec 2019.

    More about this item

    Keywords

    Revealed preference; Testable restrictions; Time preference; Discounted utility; Present bias; Exponential discounting;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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