Judgment and Decision Making (May 2013)

How to measure time preferences: An experimental comparison of three methods

  • David J. Hardisty,
  • Katherine F. Thompson,
  • David H. Krantz,
  • Elke U. Weber

DOI
https://doi.org/10.1017/S1930297500005957
Journal volume & issue
Vol. 8
pp. 236 – 249

Abstract

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In two studies, time preferences for financial gains and losses at delays of up to 50 years were elicited using three different methods: matching, fixed-sequence choice titration, and a dynamic “staircase” choice method. Matching was found to create fewer demand characteristics and to produce better fits with the hyperbolic model of discounting. The choice-based measures better predicted real-world outcomes such as smoking and payment of credit card debt. No consistent advantages were found for the dynamic staircase method over fixed-sequence titration.

Keywords