Measuring Intertemporal Preferences Using Response Times

16 Pages Posted: 23 Sep 2008 Last revised: 21 Sep 2022

See all articles by Christopher F. Chabris

Christopher F. Chabris

Harvard University - Department of Psychology

David Laibson

Harvard University - Department of Economics; National Bureau of Economic Research (NBER)

Carrie Morris

Washington University in St. Louis - School of Medicine

Jonathon Schuldt

University of Michigan at Ann Arbor - Department of Psychology

Dmitry Taubinsky

Harvard University

Date Written: September 2008

Abstract

We use two different approaches to measure intertemporal preferences. First we employ the classical method of inferring preferences from a series of choices (subjects choose between $X now or $Y in D days). Second we adopt the novel approach of inferring preferences using only response time data from the same choices (how long it takes subjects to choose between $X now or $Y in D days). In principle, the inference from response times should work, since choices between items of nearly equivalent value should take longer than choices between items with substantially different values. We find that choice-based analysis and response-time-based analysis yield nearly identical discount rate estimates. We conclude that response time data sheds light on both our revealed (choice-based) preferences and on the cognitive processes that implement those preferences.

Suggested Citation

Chabris, Christopher F. and Laibson, David I. and Morris, Carrie and Schuldt, Jonathon and Taubinsky, Dmitry, Measuring Intertemporal Preferences Using Response Times (September 2008). NBER Working Paper No. w14353, Available at SSRN: https://ssrn.com/abstract=1271385

Christopher F. Chabris

Harvard University - Department of Psychology ( email )

33 Kirkland Street
Cambridge, MA 02138
United States

HOME PAGE: http://www.wjh.harvard.edu/~cfc

David I. Laibson (Contact Author)

Harvard University - Department of Economics ( email )

Littauer Center
Room M-14
Cambridge, MA 02138
United States
617-496-3402 (Phone)
617-495-8570 (Fax)

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Carrie Morris

Washington University in St. Louis - School of Medicine ( email )

660 S. Euclid Ave., Third Floor McMillan
St. Louis, MO 63110-1010
United States

Jonathon Schuldt

University of Michigan at Ann Arbor - Department of Psychology ( email )

Ann Arbor, MI 48109
United States

Dmitry Taubinsky

Harvard University ( email )

Cambridge, MA
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
64
Abstract Views
1,685
Rank
622,763
PlumX Metrics