Time discounting in the presence of time constraints

Makito Takeuchi () and Masafumi Tsubuku ()
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Makito Takeuchi: Faculty of Business Administration, Tohoku Gakuin University, Sendai, Japan
Masafumi Tsubuku: Faculty of Economics, Daito Bunka University, Tokyo, Japan

Economics Bulletin, 2018, vol. 38, issue 2, 1180-1186

Abstract: This study explores the intertemporal choice between goods in the presence of time constraints. While previous research showed that time preferences in intertemporal decisions can be represented by a decreasing hyperbolic function, we investigate how time preferences respond to the presence of time constraints to consuming goods. The experiment is based on questionnaire data and focuses on two types of products, gift certificates and food. The results show that the time discount rate increases over time in the presence of a time constraint. In addition, for all of the goods treated in this experiment, we confirm that individual tends to be more patient towards larger rewards (magnitude effect), and future negative payoffs are discounted at a lower rate than future positive payoffs (sign effect).

Keywords: Time discounting; Intertemporal choice; Time constraints (search for similar items in EconPapers)
JEL-codes: D1 D9 (search for similar items in EconPapers)
Date: 2018-06-21
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Citations: View citations in EconPapers (1)

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