Can time-inconsistent preferences explain hypothetical biases?
نویسندگان
چکیده
We investigate whether the value of time (VOT) depends on when corresponding preferences are measured: in advance, just before, or after period for which being evaluated. find that VOT is highest elicited before period. This an indication affected by time-inconsistent, and more specifically, present-biased preferences. argue this result may explain why valuations based stated preference (SP) data typically found to be lower than those revealed (RP) data: most RP surveys evaluate respondents close measured, whereas instances evaluated SP tend abstract, referencing past future periods.
منابع مشابه
Nonparametric Analysis of Time-Inconsistent Preferences
This paper provides a revealed preference characterisation of quasi-hyperbolic discounting which is designed to be applied to readily-available expenditure surveys. We describe necessary and sufficient conditions for the leading forms of the model and also explore the consequences the restrictions on preferences popularly used in empirical lifecycle consumption models. Using data from a househo...
متن کاملCan Contract Theory Explain Social Preferences?∗
During the last several decades, a growing body of laboratory research has shown that human subjects do not always choose to maximize material payoffs. Economists following the lead of psychologists Daniel Kahneman and Amos Tversky (1979) and Mathew Rabin (1993) have built on such research to suppose that individuals are concerned about the distribution of material rewards between themselves an...
متن کاملTime-inconsistent Risk Preferences in a Laboratory Experiment
We conducted an experiment to explore the time-consistency of risk preferences in a multi-period betting game. Specifically, subjects planned their contingent betting decisions in advance then played the game dynamically later to determine whether their respective decisions matched. We found that subjects took more risk than planned in their initial bet and after losses. In addition, this incre...
متن کاملStrategic Implications of Competing For Consumers with Time Inconsistent Preferences∗
I examine oligopolistic competition for time inconsistent consumers. The two cases of investment (health clubs) and leisure goods (credit cards) have different implications for strategy. For leisure goods the firms offer introductory rates at the fully rational consumer level, but consumers end up paying higher fixed rates later. In the limit, the markups go to zero. For investment goods there ...
متن کاملEfficiency and equilibrium when preferences are time-inconsistent
We consider an exchange economy with time-inconsistent consumers whose preferences are additively separable. When these consumers trade in a sequence of markets, their time-inconsistency may introduce a non-convexity that gives them an incentive to trade lotteries. If there are many consumers, competitive equilibria with and without lotteries exist. The existence of symmetric equilibria may req...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Economics of Transportation
سال: 2021
ISSN: ['2212-0130', '2212-0122']
DOI: https://doi.org/10.1016/j.ecotra.2021.100207