Article ID Journal Published Year Pages File Type
5072409 Games and Economic Behavior 2010 19 Pages PDF
Abstract
We find that discount rates are high and decline with both delay and amount, as most of the previous literature. We also find clear evidence for present bias. When identifying the form of the present bias, little evidence for quasi-hyperbolic discounting is found. The data strongly favor instead a specification with a small present bias in the form of a fixed cost, of the order of $4 on average across subjects. With such a fixed cost the curvature of discounting is imprecisely estimated and both exponential and hyperbolic discounting cannot be rejected for several subjects.
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Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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