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Time is knowledge: what response times reveal

Author

Listed:
  • Jean-Michel Benkert
  • Shuo Liu
  • Nick Netzer

Abstract

Response times contain information about economically relevant but unobserved variables like willingness to pay, preference intensity, quality, or happiness. We provide a general characterization of the properties of latent variables that can be detected using response time data. Our theoretical framework unifies and generalizes results in the literature and gives rise to many new applications. We illustrate the rich insights that the method can deliver through several empirical applications: revealed preference analysis, identifying an optimal nudge, testing decreasing marginal happiness of income, and predicting treatment heterogeneity.

Suggested Citation

  • Jean-Michel Benkert & Shuo Liu & Nick Netzer, 2024. "Time is knowledge: what response times reveal," ECON - Working Papers 449, Department of Economics - University of Zurich, revised Feb 2026.
    • Handle: RePEc:zur:econwp:449
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    References listed on IDEAS

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    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D60 - Microeconomics - - Welfare Economics - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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