Are time preferences for risky outcomes, riskless outcomes and commodities really different?

C-Tier

Journal: Economics Letters

Year: 2013

Volume: 118

Issue: 3

Pages: 512-514

Authors (4)

Shavit, Tal (College of Management Academic...) Benzion, Uri (not in RePEc) Shapir, Offer Moshe (not in RePEc) Galil, Koresh (Ben Gurion University of the N...)

Score contribution per author:

0.251 = (α=2.01 / 4 authors) × 0.5x C-tier

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

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Abstract

This paper suggests that part of the implied time Subjective Discount Rate (SDR) collected by Willingness To Pay (WTP) is an immediate premium. We offer a theoretical and experimental analysis of the gross SDR, which consists of the immediate premium and the net SDR (i.e., SDR less the immediate premium). We find that the net SDR for an assured monetary payment is no different than the SDR for a lottery or USB stick. However, the gross SDR for the assured outcome is higher than the SDR for a lottery or the USB stick.

Are time preferences for risky outcomes, riskless outcomes and commodities really different?

Authors (4)

Abstract

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