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Behavioral Economics pp 151–171Cite as

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Time and Preferences

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Abstract

OK, today I have just received as a gift something I always dreamed about, but given its cost, I never resolved to buy: a white truffle. I like it a lot, especially grated over Piedmont tagliolini (sort of egg-rich fresh pasta thinner than fettuccine). And I know that I have to eat it within a week. So, when will I eat my truffle? Tonight? Or shall I delay my consumption, so that each day I will know that there is a white truffle waiting for me in the fridge? Which option gives me more pleasure?

Do I contradict myself?

Very well then I contradict myself

(I am large, I contain multitudes.)

—Walt Whitman, Song of Myself, section 51

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Notes

  1. 1.

    “The idea that such a [mathematical] investigation could have any influence upon ethical judgments of policy is one which deserves the impatience of modern economists” (Samuelson 1937).

  2. 2.

    Cf., for example, DellaVigna (2009).

  3. 3.

    Cf. in particular Loewenstein (2000).

  4. 4.

    Camerer et al. (2004).

  5. 5.

    In the table we do not consider “pathological” factors, such as drug addiction.

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Authors and Affiliations

  1. Center for Monetary and Financial Studies LUISS University, Rome, Italy

    Fabrizio Ghisellini

  2. New York University, New York, NY, USA

    Beryl Y. Chang

Authors
  1. Fabrizio Ghisellini
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  2. Beryl Y. Chang
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Ghisellini, F., Chang, B.Y. (2018). Time and Preferences. In: Behavioral Economics. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-75205-1_7

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  • DOI: https://doi.org/10.1007/978-3-319-75205-1_7

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  • Print ISBN: 978-3-319-75204-4

  • Online ISBN: 978-3-319-75205-1

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