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Makito Takeuchi and Masafumi Tsubuku
''Time discounting in the presence of time constraints''
( 2018, Vol. 38 No.2 )
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
JEL: D1 - Household Behavior: General
D9 - Intertemporal Choice and Growth: General
Manuscript Received : Mar 07 2018 Manuscript Accepted : Jun 21 2018

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