Time Discounting in the Presence of Time Constraints
7 Pages Posted: 1 Apr 2016
Date Written: April 1, 2016
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: Suggested Citation