How to measure time preferences: An experimental comparison of three methods

David J. Hardisty; Katherine F. Thompson; David H. Krantz; Elke U. Weber

How to measure time preferences: An experimental comparison of three methods

David J. Hardisty, Katherine F. Thompson, David H. Krantz, Elke U. Weber

Research output: Contribution to journal › Article › peer-review

Abstract

In two studies, time preferences for financial gains and losses at delays of up to 50 years were elicited using three different methods: matching, fixed-sequence choice titration, and a dynamic "staircase" choice method. Matching is found to create fewer demand characteristics and to produce better fits with the hyperbolic model of discounting. The choice-based measures are shown to better predict real-world outcomes such as smoking and payment of credit card debt. No consistent advantages are found for the dynamic staircase method over fixed-sequence titration.

Original language	English (US)
Pages (from-to)	1-15
Number of pages	15
Journal	Judgment and Decision Making
Volume	8
Issue number	3
State	Published - May 2013
Externally published	Yes

All Science Journal Classification (ASJC) codes

General Decision Sciences
Applied Psychology
Economics and Econometrics

Keywords

Discounting
Measurement
Method
Time preference

Cite this

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AB - In two studies, time preferences for financial gains and losses at delays of up to 50 years were elicited using three different methods: matching, fixed-sequence choice titration, and a dynamic "staircase" choice method. Matching is found to create fewer demand characteristics and to produce better fits with the hyperbolic model of discounting. The choice-based measures are shown to better predict real-world outcomes such as smoking and payment of credit card debt. No consistent advantages are found for the dynamic staircase method over fixed-sequence titration.

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How to measure time preferences: An experimental comparison of three methods

Abstract

All Science Journal Classification (ASJC) codes

Keywords

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