Consistency among elicitation techniques for intertemporal choice: a within-subjects investigation of anomalies
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Authors
Guyse, Jeffrey L.
Simon, Jay
Subjects
Time preference
discounting
anomalies
procedure invariance
discounting
anomalies
procedure invariance
Advisors
Date of Issue
2011
Date
Publisher
Language
Abstract
Three common anomalies of intertemporal choice (Gain/Loss Asymmetry, Short/Long
Asymmetry, and the Absolute Magnitude Effect) are investigated using both sequences and
matching in a within-subjects experiment. In both procedures, it appears that the participants in
this study evaluate monetary outcomes over time differently than the traditional discounting
model predicts. Patterns consistent with two of the anomalies (Gain/Loss and Absolute
Magnitude Effect) surface and interact in both elicitation techniques. Finally, a systematic
inconsistency exists between the two methods. We observe significantly more consistency
between the two elicitation techniques when the outcome is a gain in the relatively far future than
when it is an equitable future loss.
Type
Article
Description
Series/Report No
Department
Organization
Defense Resources Management Institute
Identifiers
NPS Report Number
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Funder
Format
Citation
Distribution Statement
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.