Experimental and Theoretical Study of the Effect of Property Right on Intertemporal Behavior

Document Type : Research Paper


1 PhD. Student of Economics , University of Mashhad

2 Associate Professor, Faculty of Economics, University of Mashhad

3 Assistant Professor, Faculty of Economics, University of Mashhad


Empirical and experimental studies show that time preferences for long run are smaller than for short run. In the other word individuals in their intertemporal behavior are present bias. So the saving level becomes less than its optimal level. In this study, we assume that property right could eliminate deferent transaction cost between consumption and saving. We investigated our hypothesis by experimental method. In our experiment, 130 students participated and they answered the "MPL" tests in two group. The first group had not receive commitment. We gave the second group commitment about payment. And found time inconsistent behavior in both groups. The parameter of long run time preference was the same in both first and second group. But the present bias parameter was smaller for the first group. This means that those who have received commitment are less present bias in their intertemporal behavior.
JEL Classification: C91, D01, D23, D12


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Volume 52, Issue 3 - Serial Number 120
October 2017
Pages 527-549
  • Receive Date: 12 December 2016
  • Revise Date: 18 February 2017
  • Accept Date: 27 February 2017
  • First Publish Date: 09 October 2017