How time flies: Time perception and intertemporal choice

Xiu Chen and Xiaojian Zhao

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), 2024, vol. 109, issue C

Abstract: This paper identifies a potential gap between time preference and intertemporal choices such as time discounting tasks: The intertemporal choices could be partly driven by a biased perception of time and thus may not completely reveal actual time preference. To test this, we explore the causal relationship between time perception and intertemporal choices by conducting a laboratory experiment in which cognitive load is used as a stimulating instrument to induce differences in time perception. We establish that the perceived time lengths for subjects with high cognitive load are shorter than those with low cognitive load and that individuals who underestimate time appear more patient in their intertemporal choices. Mediation analyses show that time perception mediates a significant portion of cognitive load’s effect on intertemporal choices. Our study thus demonstrates that time preference identified by intertemporal choices might be confounded by potentially biased time perception, calling for improving suboptimal time-related economic decisions due to an individual’s misperception of how time flies.

Keywords: Time perception; Intertemporal choice; Time discounting; Cognitive load (search for similar items in EconPapers)
JEL-codes: C91 D91 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S2214804323001866
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:soceco:v:109:y:2024:i:c:s2214804323001866

DOI: 10.1016/j.socec.2023.102160

Access Statistics for this article

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics) is currently edited by Pablo Brañas Garza

More articles in Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics) from Elsevier
Bibliographic data for series maintained by Catherine Liu ().