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

@article{9e3d312aa09d49b4b291d87a8e453357,

title = "How to measure time preferences: An experimental comparison of three methods",

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.",

keywords = "Discounting, Measurement, Method, Time preference",

author = "Hardisty, \{David J.\} and Thompson, \{Katherine F.\} and Krantz, \{David H.\} and Weber, \{Elke U.\}",

year = "2013",

month = may,

language = "English (US)",

volume = "8",

pages = "1--15",

journal = "Judgment and Decision Making",

issn = "1930-2975",

publisher = "Society for Judgment and Decision Making",

number = "3",

}

TY - JOUR

T1 - How to measure time preferences

T2 - An experimental comparison of three methods

AU - Hardisty, David J.

AU - Thompson, Katherine F.

AU - Krantz, David H.

AU - Weber, Elke U.

PY - 2013/5

Y1 - 2013/5

N2 - 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.

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.

KW - Discounting

KW - Measurement

KW - Method

KW - Time preference

UR - https://www.scopus.com/pages/publications/84878433080

UR - https://www.scopus.com/inward/citedby.url?scp=84878433080&partnerID=8YFLogxK

M3 - Article

AN - SCOPUS:84878433080

SN - 1930-2975

VL - 8

SP - 1

EP - 15

JO - Judgment and Decision Making

JF - Judgment and Decision Making

IS - 3

ER -

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

Abstract

All Science Journal Classification (ASJC) codes

Keywords

Other files and links

Fingerprint

Cite this