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Procedures for eliciting time preferences
journal contribution
posted on 2023-06-09, 08:41 authored by David Freeman, Paola Manzini, Marco Mariotti, Luigi MittoneWe study three procedures to elicit attitudes toward 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.
History
Publication status
- Published
File Version
- Accepted version
Journal
Journal of Economic Behavior and OrganizationISSN
0167-2681Publisher
ElsevierExternal DOI
Issue
Part AVolume
126Page range
235-242Department affiliated with
- Economics Publications
Full text available
- Yes
Peer reviewed?
- Yes