Experiments on intertemporal consumption typically show that people have difficulties in optimally solving such problems. Previous studies have focused on contexts in which agents are faced with risky future incomes and have to plan over long horizons. We present an experiment comparing decision making under certainty, risk and ambiguity, over a shorter life-cycle. Results show that behaviour in the ambiguity treatment is markedly different than in the risk condition and it is characterized by a significant pattern of under-consumption.
The Effect of Short Planning Horizon on Intertemporal Consumption Choices
CARBONE, Enrica;
2012
Abstract
Experiments on intertemporal consumption typically show that people have difficulties in optimally solving such problems. Previous studies have focused on contexts in which agents are faced with risky future incomes and have to plan over long horizons. We present an experiment comparing decision making under certainty, risk and ambiguity, over a shorter life-cycle. Results show that behaviour in the ambiguity treatment is markedly different than in the risk condition and it is characterized by a significant pattern of under-consumption.File in questo prodotto:
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