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Looking ahead: subjective time perception and individual discounting

Bradford, W. David, Dolan, Paul and Galizzi, Matteo M. (2018) Looking ahead: subjective time perception and individual discounting. Journal of Risk and Uncertainty. ISSN 0895-5646 (In Press)

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Abstract

We disentangle hyperbolic discounting from subjective time perception using experimental data from incentive-compatible tests to measure time preferences, and a set of experimental tasks to measure time perception. Two behavioral parameters are related to two factors affecting how we look ahead to future events. The first is some component of time preferences reflecting hyperbolic discounting. The second factor is that non-constant discounting may also be a reflection of subjective time perception: if people’s perception of time follows a near logarithmic process (as heat, sound, and light do) then estimates of individual discounting will be mis-measured and incorrectly suggest hyperbolic discounting even if discounting over subjective time is constant. We empirically estimate the two distinct behavioral parameters using data collected from 178 participants to a lab experiment. The results support the hypothesis that apparent non-constant discounting is largely a reflection of non-linear subjective time perception.

Item Type: Article
Official URL: https://link.springer.com/journal/11166
Additional Information: © 2018 Springer
Divisions: Psychological and Behavioural Science
Subjects: B Philosophy. Psychology. Religion > BF Psychology
Sets: Departments > Psychological and Behavioural Science
Date Deposited: 05 Oct 2018 14:09
Last Modified: 23 Jan 2019 21:00
URI: http://eprints.lse.ac.uk/id/eprint/90369

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