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How long is a minute?

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  • Brocas, Isabelle
  • Carrillo, Juan D.
  • Tarrasó, Jorge

Abstract

Psychophysics studies suggest that our perception of time is different from the objective passage of time. Economics research emphasizes that the value of a reward depends on the delay involved. In this paper, we combine both strands and estimate time perception and time discounting functions at the individual level in an incentivized controlled laboratory environment. We find a negative and statistically significant correlation between time perception and time discounting: subjects who overestimate objective time intervals are less willing to delay gratification. The result suggests that our ability to delay consumption is related to our mental representation of time delays.

Suggested Citation

  • Brocas, Isabelle & Carrillo, Juan D. & Tarrasó, Jorge, 2018. "How long is a minute?," Games and Economic Behavior, Elsevier, vol. 111(C), pages 305-322.
    • Handle: RePEc:eee:gamebe:v:111:y:2018:i:c:p:305-322
    DOI: 10.1016/j.geb.2018.06.007
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    2. Chen, Josie I. & He, Tai-Sen & Riyanto, Yohanes E., 2019. "The effect of language on economic behavior: Examining the causal link between future tense and time preference in the lab," European Economic Review, Elsevier, vol. 120(C).
    3. Benjamin Enke & Thomas W. Graeber, 2021. "Cognitive Uncertainty in Intertemporal Choice," CESifo Working Paper Series 9472, CESifo.
    4. Benjamin Enke & Thomas Graeber & Ryan Oprea, 2023. "Complexity and Time," CESifo Working Paper Series 10327, CESifo.
    5. Hardardottir, Hjördis, 2019. "Many Balls in the Air Make Time Fly: The Effect of Multitasking on Time Perception and Time Preferences," Working Papers 2019:11, Lund University, Department of Economics, revised 17 Sep 2019.
    6. Guillon, Marlène & Nguyen-Van, Phu & Ventelou, Bruno & Willinger, Marc, 2024. "Consumer impatience: A key motive for Covid-19 vaccination," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 110(C).
    7. Chen, Xiu & Zhao, Xiaojian, 2024. "How time flies: Time perception and intertemporal choice," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 109(C).

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    More about this item

    Keywords

    Laboratory experiments; Time perception; Time discounting; Time estimation;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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