Magnitude effect in intertemporal allocation tasks

Abstract Intertemporal choices are affected by both discount rate and utility curvature. We investigate how the two aspects of time preference size total budget using an intertemporal allocation task. At aggregate level as well at individual level, we find magnitude effects on substitutability (i.e., curvature). Individuals more patient when dealing with larger budgets also regard to be fungible. The latter effect suggests that degree asset integration is increasing in stake.