Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/237746 
Year of Publication: 
2021
Series/Report no.: 
Tinbergen Institute Discussion Paper No. TI 2021-013/V
Publisher: 
Tinbergen Institute, Amsterdam and Rotterdam
Abstract: 
We propose a simple method for eliciting individual time preferences without estimating utility functions even in settings where background consumption changes over time. It relies on lottery tickets with high rewards. In a standard intertemporal choice model high rewards decouple lottery choices from variation in background consumption. We validate our elicitation method experimentally on two student samples: one asked in December when their current budget is reduced by extraordinary expenditures for Christmas gifts; the other asked in February when no such extra constraints exist. We illustrate an application of our method with unemployed job seekers which naturally have income/consumption variation.
Subjects: 
time preferences
experimental elicitation
job search
hyperbolic discounting
JEL: 
J64
D90
Document Type: 
Working Paper

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