Experimental results in research on time preference are often controversial. We propose a systematic investigation of choice task in multiple price list format (MPL) that is frequently implemented in experiments on time preference, through a computer simulation analysis. We conduct experiments with artificial subjects to demonstrate that elicited discount rates are highly dependent on the structure of elicitation task. We verify that implementation of choice task in MPL with nominal structure results in observation of hyperbolic discounting. Choice task in MPL with interest rates structure leads to elicitation of discount rates compatible with exponential discounting. Moreover, we show that the magnitude and intensity of corresponding pattern in data depends on the internal structure of elicitation task. Comparison between discount rates elicited with artificial and human subjects suggests that behavior of human subjects in experiments with MPL can be described by two simple rules: positive discounting and anchoring.

Assessing elicitation task bias in time preference using experiments with artificial subjects / Tokarchuk, Oksana; Gabriele, Roberto. - ELETTRONICO. - 2010:12(2010).

Assessing elicitation task bias in time preference using experiments with artificial subjects

Tokarchuk, Oksana;Gabriele, Roberto
2010-01-01

Abstract

Experimental results in research on time preference are often controversial. We propose a systematic investigation of choice task in multiple price list format (MPL) that is frequently implemented in experiments on time preference, through a computer simulation analysis. We conduct experiments with artificial subjects to demonstrate that elicited discount rates are highly dependent on the structure of elicitation task. We verify that implementation of choice task in MPL with nominal structure results in observation of hyperbolic discounting. Choice task in MPL with interest rates structure leads to elicitation of discount rates compatible with exponential discounting. Moreover, we show that the magnitude and intensity of corresponding pattern in data depends on the internal structure of elicitation task. Comparison between discount rates elicited with artificial and human subjects suggests that behavior of human subjects in experiments with MPL can be described by two simple rules: positive discounting and anchoring.
2010
Pisa
Laboratory of Economics and Management, Sant'Anna School of Advanced Studies, Pisa
Assessing elicitation task bias in time preference using experiments with artificial subjects / Tokarchuk, Oksana; Gabriele, Roberto. - ELETTRONICO. - 2010:12(2010).
Tokarchuk, Oksana; Gabriele, Roberto
File in questo prodotto:
File Dimensione Formato  
LEM2010-12.pdf

accesso aperto

Tipologia: Post-print referato (Refereed author’s manuscript)
Licenza: Altra licenza (Other type of license)
Dimensione 400.89 kB
Formato Adobe PDF
400.89 kB Adobe PDF Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11572/94668
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact