In this paper we elicit preferences for discounting via experimental techniques. We then estimate a general speci…cation of discounting that nests exponential and hyperbolic discounting, as well as various forms of present bias, including quasihyperbolic discounting. The data strongly favor a speci…cation with a small present bias in the form of a …xed cost, of the order of $4 on average across...

OBJECTIVE To document the impact of changes to tobacco taxes on the range and price of tobacco sold during the period when the National Tobacco Campaign (NTC) was run. DATA SOURCES Information about brand availability, pack size, and price was extracted from Australian Retail Tobacconist. A retail observational survey was undertaken to monitor actual retail prices. Data on cigarette prices, b...

In many differentiated product markets prices are determined through a negotiation process between buyers and sellers. Sellers post a price, but consumers may be able to negotiate a discount. The extent to which sellers negotiate may depend on consumer characteristics; ignoring the actual pricing mechanism can lead to an incomplete and biased analysis. Moreover, discounting is an important form...

A dynamic programming model was developed in which cows were described in terms of lactation number, body weight, 305-day milk yield, and milk fat percent. Milk returns, beef sales, feed costs, replacement costs, and cow depreciation costs were included. A 10-yr planning horizon was used. Three prices were assigned to each economic component and to the interest rate in the discounting procedure...

This paper studies the causal e¤ect of individuals’overcon…dence and bounded rationality on asset markets. To do that, we combine a new market mechanism with an experimental design, where (1) players’interaction is centered on the inferences they make about each others’ information, (2) overcon…dence in private information is controlled by the experimenter (i.e., used as a treatment), and (3) n...

A mathematical formalism is developed for the existence of unique invariants associated with wide classes of observed discounting behavior. These invariants are ‘exponential discount rate spectra,’ derived from the theory of completely monotone functions. Exponential discounting, the empirically important case of hyperbolic discounting, and so-called sub-additive discounting are each special ca...

A key consideration for development of energy and climate policy affecting the forestry and agricultural sectors is that the selection of specific mechanisms implemented to achieve bioenergy production and/or greenhouse gas (GHG) mitigation targets may have substantial effects on landowner incentives to adopt alternative practices. For instance, the prices of allowances and offsets are expected...

0092-6566/$ see front matter 2008 Elsevier Inc doi:10.1016/j.jrp.2008.07.005 * Corresponding author. Fax: +1 416 978 4811. E-mail address: [email protected] (J.B. Hir Delay discounting describes the extent to which the value of a reward decreases as the delay to obtaining that reward increases. Lower discounting rates predict better outcomes in social, academic, and health domains. The cu...

Article history: Received 28 January 2008 Available online xxxx JEL classification: C91 D03 D90 In this paper we elicit preferences for money–time pairs via experimental techniques. We estimate a general specification of discounting that nests exponential and hyperbolic discounting, as well as various forms of present bias, including quasi-hyperbolic discounting. We find that discount rates are...