Time Discounting in the Presence of Time Constraints

7 Pages Posted: 1 Apr 2016

Date Written: April 1, 2016

Abstract

This study explores the intertemporal choice of goods with a limited time to enjoy it. Compared to previous research showing that time preferences in intertemporal decisions have a decreasing hyperbolic function, we investigate time preferences when there are time constraints, or expirations, to consume goods. The experiment tested two types of these goods, gift certificate and food. The results show that the time discount rate in the presence of a time limit is increasing over time.

Keywords: Time discounting, Intertemporal choice, Time constraints

JEL Classification: D12, D90

Suggested Citation

Takeuchi, Makito and Tsubuku, Masafumi, Time Discounting in the Presence of Time Constraints (April 1, 2016). Available at SSRN: https://ssrn.com/abstract=2757560 or http://dx.doi.org/10.2139/ssrn.2757560

Makito Takeuchi (Contact Author)

Nagoya University ( email )

Furo-cho, Chikusa-ku
Nagoya-City, 4648601
Japan

Masafumi Tsubuku

Daito Bunka University ( email )

1-9-1, Takashimadaira
Itabashi-ku
Tokyo, 1758571
Japan

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