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Choice reversal without temptation: A dynamic experiment on time preferences

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  • Marco Casari

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  • Davide Dragone

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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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    References listed on IDEAS

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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. Alberto Bisin & Kyle Hyndman, 2014. "Present-Bias, Procrastination and Deadlines in a Field Experiment," NBER Working Papers 19874, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    Longitudinal experiment; Time inconsistency; Self-control; Risk; Real-effort experiment; C91; D01; D80; D90;

    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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