Latent Process Heterogeneity in Discounting Behavior

Maribeth Coller, Glenn Harrison and E. Elisabet Rutström
Authors registered in the RePEc Author Service: Elisabet Rutstrom

No 2010-09, Experimental Economics Center Working Paper Series from Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University

Abstract: We show that observed choices in discounting experiments are consistent with roughly one-half of the subjects using exponential discounting and one-half using quasi-hyperbolic discounting. We characterize the latent data generating process using a mixture model which allows different subjects to behave consistently with each model. Our results have substantive implications for the assumptions made about discounting behavior, and also have significant methodological implications for the manner in which we evaluate alternative models when there may be complementary data generating processes.

JEL-codes: C91 D91 (search for similar items in EconPapers)
Pages: 23
Date: 2010-09
New Economics Papers: this item is included in nep-cbe, nep-exp and nep-neu
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Latent process heterogeneity in discounting behavior (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:exc:wpaper:2010-09

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