Mental Zooming as Variable Asset Integration in Inter-Temporal Choice

The paper is published as a  New Journal Paper and can be downloaded here

Abstract of the paper
Our time preferences deviate systematically from that of Homo economicus. They seem to be driven by a form of mental zooming, where higher and more distant amounts induce a more holistic perspective in contrast to smaller and near future amounts. We model zooming as variable asset integration and ask whether this can explain the observed variation in discount rates in experiments. It can. Equally important, the zooming for both time and magnitude is similar across two countries (Ethiopia and Malawi) and within a country (Ethiopia).

Published 3. August 2022 - 2:43 - Updated 3. August 2022 - 2:43