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dc.contributor.authorManzini, Paolaen_US
dc.contributor.authorMariotti, Marcoen_US
dc.contributor.authorMittone, Luigien_US
dc.date.accessioned2006-11-20en_US
dc.date.accessioned2010-07-07T09:54:04Z-
dc.date.available2010-07-07T09:54:04Z-
dc.date.issued2006en_US
dc.identifier.urihttp://hdl.handle.net/10419/34036-
dc.description.abstractIn this paper we formulate and investigate experimentally a model of how individuals choose between time sequences of monetary outcomes. The theoretical model assumes that a decision-maker uses, sequentially, two criteria to screen options. Each criterion only permits a decision between some pairs of options, while the other options are incomparable according to that criterion. When the first criterion is not decisive, the decision maker resorts to the second criterion to select an alternative. This type of decision procedures has encountered the favour of several psychologists, though it is quite under-explored in the economics domain. In the experiment we find that: 1) traditional economic models based on discounting alone cannot explain a significant (almost 30%) proportion of the data no matter how much variability in the discount functions is allowed; 2) our model, despite considering only a specific (exponential) form of discounting, can explain the data much better solely thanks to the use of the secondary criterion; 3) our model explains certain specific patterns in the choices of the 'irrational' people. We can safely reject the hypothesis that anomalous behaviour is due simply to random 'mistakes' around the basic predictions of discounting theories: the deviations are not random and there are clear systematic patterns of association between 'irrational' choices.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesIZA Discussion Papers 2129en_US
dc.subject.jelC91en_US
dc.subject.jelD9en_US
dc.subject.ddc330en_US
dc.subject.keywordtime preferenceen_US
dc.subject.keywordtime sequencesen_US
dc.subject.keywordnegative discountingen_US
dc.titleChoosing monetary sequences: theory and experimental evidenceen_US
dc.typeWorking Paperen_US
dc.identifier.ppn512343381en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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