search query: @indexterm INTERTEMPORAL ECONOMICS / total: 19
reference: 13 / 19
| Author: | Gigliotti, G. Sopher, B. |
| Title: | Violations of present-value maximization in income choice |
| Journal: | Theory and Decision
1997 : JUL, VOL. 43:1, p. 45-69 |
| Index terms: | INTERTEMPORAL ECONOMICS MANAGEMENT RATIONALITY |
| Language: | eng |
| Abstract: | The authors report results of an experiment testing for present-value maximization in intertemporal income choice. Two-thirds of subjects did not maximize present value. Through a series of experimental manipulations that impose costs on non-present value maximizers, the authors are able to reduce the level of violations substantially. They find, however, that a sizable proportion of subjects continue to systematically violate present-value principles. These subjects either cannot or choose not to distinguish between income and expenditure in making their choices. |
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