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Measuring time preferences: A comparison of experimental methods

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  • Andreoni, James
  • Kuhn, Michael A.
  • Sprenger, Charles

Abstract

Eliciting time preferences has become an important component of both laboratory and field experiments, yet there is no consensus as how to best measure discounting. We examine the predictive validity of two recent, simple, easily administered, and individually successful elicitation tools: convex time budgets (CTB) and double multiple price lists (DMPL). Using similar methods, the CTB and DMPL are compared using within- and out-of-sample predictions. While each perform equally well within sample, the CTB significantly outperforms the DMPL on out-of-sample measures.

Suggested Citation

  • Andreoni, James & Kuhn, Michael A. & Sprenger, Charles, 2015. "Measuring time preferences: A comparison of experimental methods," Journal of Economic Behavior & Organization, Elsevier, vol. 116(C), pages 451-464.
    • Handle: RePEc:eee:jeborg:v:116:y:2015:i:c:p:451-464
    DOI: 10.1016/j.jebo.2015.05.018
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    More about this item

    Keywords

    Discounting; Dynamic inconsistency; Curvature; Convex budgets;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

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