Discounting and extraction behavior in continuous time resource experiments - INRAE - Institut national de recherche pour l’agriculture, l’alimentation et l’environnement
Pré-Publication, Document De Travail Année : 2024

Discounting and extraction behavior in continuous time resource experiments

Résumé

Experimenting with dynamic games raises issues about implementing discounting in experiments. Theoretical rational decision-makers evaluate payoff streams by converting them to a reference period, often "time zero." In experiments, subjects can adapt their strategy continuously. We explore individual behavior in a dynamic resource extraction experiment with two treatments: "z-discounting" (evaluating gains at time zero) and "p-discounting" (evaluating gains in present-time equivalents). Contrary to theoretical predictions, our data shows a significant positive treatment effect, indicating more substantial extraction under p-discounting. This challenges the theoretical model and prompts discussion on methodological considerations for discounting in laboratory settings.
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Dates et versions

hal-04477409 , version 1 (26-02-2024)

Identifiants

  • HAL Id : hal-04477409 , version 1

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Marion Davin, Dimitri Dubois, Katrin Erdlenbruch, Marc Willinger. Discounting and extraction behavior in continuous time resource experiments. 2024. ⟨hal-04477409⟩
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