Does consumer behavior exhibit time inconsistency? This is an essential, yet difficult question to answer. This dissertation attempts to answer this question based on a large-scale randomized experiment in the credit card market…
Author: shui, haiyan
Source: University of Maryland
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Contents
1 Introduction
2 Studies of Time Discounting
3 A Unique Dataset
4 A Multi-period Complete Information Model
4.1 Time preferences and Model Set-up
4.2 “Rank Reversal”
4.2.1 “Rank Reversal” Impossible for Exponential Agents
4.2.2 “Rank Reversal” Possible for Hyperbolic Agents
5 A Multi-period Incomplete Information Model
5.1 Model Setup
5.2 Numerical Simulation and Model Prediction
6 Estimation
6.1 Estimation Strategy
6.2 Estimation Results
6.3 Robustness
7 Conclusion
A Sign ofdA1 dβ1
B Income Process
Bibliography