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On Measuring Time Preferences

  • James Andreoni
  • Michael A. Kuhn
  • Charles Sprenger

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.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 19392.

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Date of creation: Aug 2013
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Handle: RePEc:nbr:nberwo:19392
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