Choice Over Time

Paola Manzini and Marco Mariotti

No 2993, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In the last twenty years a growing body of experimental evidence has posed a challenge to the standard Exponential Discounting Model of choice over time. Attention has focused on some specific ‘anomalies’, notably preference reversal and declining discount rates, leading to the formulation of the model of hyperbolic discounting which is finding increasing favour in the literature. In this paper we provide a survey of both the theoretical modelling and the experimental evidence relating to choice over time. As we will show, a careful analysis of the mapping between theoretical models and experimental investigations raises questions as to whether some of the most focused upon anomalies should be indeed classified as such, or whether they are really the most challenging ones for conventional theory. New developments are emerging both at the theoretical and empirical level, opening up new exciting avenues for investigation

Keywords: experiments; time preference; choice over time; theory (search for similar items in EconPapers)
JEL-codes: C91 D9 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2007-08
New Economics Papers: this item is included in nep-cbe and nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published - published in: P. Anand, P. Pattanaik and C. Puppe (eds.) Oxford Handbook of Rational and Social Choice, Oxford: OUP, 2009

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Working Paper: Choice over Time (2007)
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