Intertemporal choice with liquidity constraints: Theory and experiment

C-Tier
Journal: Economics Letters
Year: 2013
Volume: 118
Issue: 1
Pages: 101-103

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Since Thaler (1981), we have lived with the uncomfortable stylized fact that many humans choose strictly dominated actions in intertemporal choice experiments. We designed an experiment to probe the reasons for the apparently suboptimal behavior, and we find that the classic Fisher (1930) intertemporal choice theory with perceived transaction costs and liquidity constraints is perfectly consistent with our experimental data, whereas hyperbolic discounting is not.

Technical Details

RePEc Handle
repec:eee:ecolet:v:118:y:2013:i:1:p:101-103
Journal Field
General
Author Count
1
Added to Database
2026-01-29