Happiness and Time Preference: The Effect of Positive Affect in a Random- Assignment Experiment

33 Pages Posted: 19 Oct 2009 Last revised: 15 Jul 2010

See all articles by John Ifcher

John Ifcher

Santa Clara University - Leavey School of Business - Economics Department

Homa Zarghamee

Santa Clara University - Leavey School of Business

Date Written: October 19, 2009

Abstract

We conduct a random-assignment experiment to investigate whether positive affect impacts time preference, where time preference denotes a preference for present over future utility. Our result indicates that, compared to neutral affect, mild positive affect significantly reduces subjects’ time preference. Affects were induced using short film clips.

Our result has implications for the effect of happiness on time preference and the role of emotions in economic decision making in general. Finally, we reconfirm the ubiquity of time preference and start to explore its determinants.

Keywords: positive affect, happiness, time preference, random-assignment

JEL Classification: JEL D01, D90, D60

Suggested Citation

Ifcher, John and Zarghamee, Homa, Happiness and Time Preference: The Effect of Positive Affect in a Random- Assignment Experiment (October 19, 2009). SCU Leavey School of Business Research Paper No. 09-05, Available at SSRN: https://ssrn.com/abstract=1491247

John Ifcher (Contact Author)

Santa Clara University - Leavey School of Business - Economics Department ( email )

500 El Camino Real
Santa Clara, CA California 95053
United States

Homa Zarghamee

Santa Clara University - Leavey School of Business ( email )

500 El Camino Real
Santa Clara, CA California 95053
United States

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