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Visual Convex Time Preferences

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  • Prissé, Benjamin
  • Brañas-Garza, Pablo

Abstract

The original standard for measuring time preferences was Multiple Price List (MPL), where subjects are asked to choose between an amount of money in the present and a larger amount of money in the future. Convex Time Budget (CTB) was later introduced, allowing subjects to differentially allocate money between present and future. It improved precision of measurement but also increased the complexity of the task. In this paper we introduce the Visual Convex Time Preferences (VCTP), a new measure of time preferences synthesizing simplicity of MPL and precision of CTB. Results from the lab suggest that VCTP is robust and improves precision of time preferences measurement compared to the MPL. Same results are replicated in the field of Honduras, especially when the experiment is run with the help of enumerators. Experiments with teenagers show that younger population exhibit high level of inconsistency although older participants perform better.

Suggested Citation

  • Prissé, Benjamin & Brañas-Garza, Pablo, 2021. "Visual Convex Time Preferences," MPRA Paper 104174, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:104174
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    References listed on IDEAS

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    More about this item

    Keywords

    Time Preferences; MPL; Experiments;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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