Time Discounting for Primary and Monetary Rewards

Economics Letters, Vol. 106, No. 2, pp. 125-127, 2009

9 Pages Posted: 31 Oct 2011  

Ernesto Reuben

New York University (NYU) - New York University Abu Dhabi; IZA Institute of Labor Economics

Paola Sapienza

Northwestern University - Kellogg School of Management - Department of Finance; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Luigi Zingales

University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Date Written: 2010

Abstract

This paper reports a positive and statistically significant relation between short-term discount rates elicited with a monetary and a primary reward (chocolate). This finding suggests that high short-term discount rates are related to an underling individual trait.

Keywords: time preferences, hyperbolic discounting, intertemporal choice

JEL Classification: C91, D90, D01

Suggested Citation

Reuben, Ernesto and Sapienza, Paola and Zingales, Luigi, Time Discounting for Primary and Monetary Rewards (2010). Economics Letters, Vol. 106, No. 2, pp. 125-127, 2009. Available at SSRN: https://ssrn.com/abstract=1951648

Ernesto Reuben (Contact Author)

New York University (NYU) - New York University Abu Dhabi ( email )

PO Box 129188
Abu Dhabi
United Arab Emirates

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Paola Sapienza

Northwestern University - Kellogg School of Management - Department of Finance ( email )

Evanston, IL 60208
United States
847-491-7436 (Phone)
847-491-5719 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR)

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

Luigi Zingales

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-702-3196 (Phone)
773-834-2081 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR)

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

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