Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/92726
Authors: 
Kinari, Yusuke
Ohtake, Fumio
Tsutsui, Yoshiro
Year of Publication: 
2007
Series/Report no.: 
ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 679
Abstract: 
Most studies have not distinguished delay from intervals, so that whether the declining impatience really holds has been an open question. We conducted an experiment that explicitly distinguishes them, and confirmed the declining impatience. This implies that people make dynamically inconsistent plans. We also found the interval effect that the per-period time discount rate decreases with prolonged intervals. We show that the interval and the magnitude effects are caused, at least partially, because subjects' choices are influenced by the differential in reward amount, while Weber's law solves neither the delay nor the interval effects.
Subjects: 
time discount rate
declining impatience
interval effect
subadditivity
Weber's law
JEL: 
D81
D90
Document Type: 
Working Paper

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