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Measuring Preferences Over Intertemporal Profiles

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  • Chen Sun

    (HU Berlin)

Abstract

Growing evidence indicates that utility over time is different from utility under risk. Hence, measuring intertemporal preferences (discounting and utility) exclusively from intertemporal choices is desirable. We develop a simple method for measuring intertemporal preferences. It is parameter-free in both discounting and utility, and allows a wider range of models to be measured than preceding methods. It is easy to implement, clear to subjects, incentive compatible, and does not require more measurements than existing methods if identical assumptions are imposed. In an experiment, we illustrate how the method can be used to test recent models with unconventional assumptions non-parametrically.

Suggested Citation

  • Chen Sun, 2023. "Measuring Preferences Over Intertemporal Profiles," Rationality and Competition Discussion Paper Series 386, CRC TRR 190 Rationality and Competition.
    • Handle: RePEc:rco:dpaper:386
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    References listed on IDEAS

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    More about this item

    Keywords

    measuring time preferences; intertemporal profile; parameter-free;
    All these keywords.

    JEL classification:

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

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