Using Standard Sequences from Conjoint Measurement to Obtain Simple Measurements of Temporal Preference and Time Inconsistency,
Abstract
Although the techniques of conjoint measurement have been around for 40 years now, they haven’t been used to the full to study time preferences. We introduce standard sequences in the time dimension, called time tradeoff (TTO) sequences. TTO sequences can easily be measured empirically, needing only pencil and paper and no computer. They considerably simplify the analysis of intertemporal choice.
The first part of this lecture is theoretical, introducing the basic idea of TTO sequences and demonstrating how they give very easy preference foundations for virtually all presently popular models of intertemporal discounting, and measures for quantifying the degree of deviation from stationarity and rationality. The second part is empirical, presenting a measurement of TTO sequences of intertemporal decision makers, leading to immediate conclusions about their time attitudes.
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