Measuring intertemporal preferences using response times

Christopher F. Chabris, David Laibson, Carrie L. Morris, Jonathon P. Schuldt and Dmitry Taubinsky

No 14353, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We use two different approaches to measure intertemporal preferences. First we employ the classical method of inferring preferences from a series of choices (subjects choose between $X now or $Y in D days). Second we adopt the novel approach of inferring preferences using only response time data from the same choices (how long it takes subjects to choose between $X now or $Y in D days). In principle, the inference from response times should work, since choices between items of nearly equivalent value should take longer than choices between items with substantially different values. We find that choice-based analysis and response-time-based analysis yield nearly identical discount rate estimates. We conclude that response time data sheds light on both our revealed (choice-based) preferences and on the cognitive processes that implement those preferences.

JEL-codes: C0 D01 D87 D9 (search for similar items in EconPapers)
Date: 2008-09
New Economics Papers: this item is included in nep-exp
Note: EH LS PE
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Citations: View citations in EconPapers (15)

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