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No need for more time: Intertemporal allocation decisions under time pressure

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  • Florian Lindner

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  • Julia Rose

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Abstract

Time preferences drive decisions in many economic contexts. For understanding the underlying decision process, it is key to identify what aspects these preferences in different situations. To shed light on how people make intertemporal allocation choices, we analyze the stability of time preferences under time pressure. Conducting a laboratory study with 144 subjects using convex time budgets, we elicit time preferences with and without time pressure in a within-subject design. We find preferences to be stable across conditions for aggregate estimates of present-bias and utility function curvature. For standard discounting, we find subjects to be significantly less impatient under time pressure. All results hold across specifications and different sub-samples. Individual-level analyses confirm aggregate findings.

Suggested Citation

  • Florian Lindner & Julia Rose, 2016. "No need for more time: Intertemporal allocation decisions under time pressure," Working Papers 2016-24, Faculty of Economics and Statistics, University of Innsbruck.
  • Handle: RePEc:inn:wpaper:2016-24
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    Cited by:

    1. repec:kap:expeco:v:21:y:2018:i:2:d:10.1007_s10683-017-9528-1 is not listed on IDEAS
    2. Golsteyn, Bart H.H. & Schildberg-Hörisch, Hannah, 2017. "Challenges in Research on Preferences and Personality Traits: Measurement, Stability, and Inference," IZA Discussion Papers 10562, Institute for the Study of Labor (IZA).
    3. D. Pennesi, 2016. "Deciding fast and slow," Working Papers wp1082, Dipartimento Scienze Economiche, Universita' di Bologna.

    More about this item

    Keywords

    time preferences; time pressure; decision making; allocation decision; budget; experiment;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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