Reference Dependence in Intertemporal Preference
Zhihua Li () and
Songfa Zhong
Additional contact information
Zhihua Li: Birmingham Business School, University of Birmingham, Birmingham B15 2TY, United Kingdom
Management Science, 2023, vol. 69, issue 1, 475-490
Abstract:
Dynamic structures in intertemporal choices offer multiple channels through which reference dependence can occur. We examine intertemporal reference dependence when using choice lists to elicit time preference over outcome sequences. Reference point effects can arise endogenously within an outcome sequence and exogenously from the experimental environment of the choice list. We show that estimated discount factors in the choice list are biased by both kinds of reference points and propose a model to jointly account for both. Our experimental design with outcome sequences also enables us to jointly estimate the discount factor and utility curvature. We further discuss the implications for recent developments in the measurement of intertemporal preference.
Keywords: intertemporal preference; reference dependence; choice list; experiment (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.2022.4348 (application/pdf)
Related works:
Working Paper: Reference Dependence in Intertemporal Preference (2020) 
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:inm:ormnsc:v:69:y:2023:i:1:p:475-490
Access Statistics for this article
More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().