Publication:
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
Advisors
Date of Issue
2011
Date
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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.
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Article
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Organization
Defense Resources Management Institute
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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.
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