EconPapers    
Economics at your fingertips  
 

Procedures for Eliciting Time Preferences

David Freeman (), Paola Manzini (), Marco Mariotti and Luigi Mittone

No 201513, Discussion Paper Series, School of Economics and Finance from School of Economics and Finance, University of St Andrews

Abstract: We study three procedures to elicit attitudes towards delayed payments: the Becker-DeGroot-Marschak procedure; the second price auction; and the multiple price list. The payment mechanisms associated with these methods are widely considered as incentive compatible, thus if preferences satisfy Procedure Invariance, which is also widely (and often implicitly) assumed, they should yield identical time preference distributions. We find instead that the monetary discount rates elicited using the Becker-DeGroot-Marschak procedure are significantly lower than those elicited with a multiple price list. We show that the behavior we observe is consistent with an existing psychological explanation of preference reversals.

Keywords: time preferences; elicitation methods; Becker-DeGroot-Marschak pro- cedure; auctions; multiple price list (search for similar items in EconPapers)
JEL-codes: C91 D9 (search for similar items in EconPapers)
Date: 2015-10-20
New Economics Papers: this item is included in nep-cbe, nep-exp and nep-upt
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.st-andrews.ac.uk/~wwwecon/repecfiles/4/1513.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Unavailable (http://www.st-andrews.ac.uk/~wwwecon/repecfiles/4/1513.pdf [302 Found]--> https://www.st-andrews.ac.uk/~wwwecon/repecfiles/4/1513.pdf)

Related works:
Journal Article: Procedures for eliciting time preferences (2016) Downloads
Working Paper: Procedures for Eliciting Time Preferences (2016) Downloads
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:san:wpecon:1513

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Discussion Paper Series, School of Economics and Finance from School of Economics and Finance, University of St Andrews School of Economics and Finance, Castlecliffe, The Scores, Fife, KY16 9AZ. Contact information at EDIRC.
Bibliographic data for series maintained by The School of Economics and Finance ().

 
Page updated 2020-01-18
Handle: RePEc:san:wpecon:1513