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Experimental Measurement Of Discount Rates In Rural India

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  • Pender, John

Abstract

Discount rates of individuals in south India were measured using experimental games with significant rewards. Increasing the time frame or magnitude of rewards reduced discount rates, consistent with previous studies using hypothetical questions. The discounted utility model of intertemporal preferences is inconsistent with the results of the games.

Suggested Citation

  • Pender, John, 1990. "Experimental Measurement Of Discount Rates In Rural India," 1990 Annual meeting, August 5-8, Vancouver, Canada 270885, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea90:270885
    DOI: 10.22004/ag.econ.270885
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    References listed on IDEAS

    as
    1. George F. Loewenstein, 1988. "Frames of Mind in Intertemporal Choice," Management Science, INFORMS, vol. 34(2), pages 200-214, February.
    2. John M. Antle, 1987. "Econometric Estimation of Producers' Risk Attitudes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(3), pages 509-522.
    3. Uri Benzion & Amnon Rapoport & Joseph Yagil, 1989. "Discount Rates Inferred from Decisions: An Experimental Study," Management Science, INFORMS, vol. 35(3), pages 270-284, March.
    4. Binswanger, Hans P, 1981. "Attitudes toward Risk: Theoretical Implications of an Experiment in Rural India," Economic Journal, Royal Economic Society, vol. 91(364), pages 867-890, December.
    5. Thaler, Richard, 1981. "Some empirical evidence on dynamic inconsistency," Economics Letters, Elsevier, vol. 8(3), pages 201-207.
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