Research Seminars

Article TBD

Accounting & Management Control

Speaker: Yves GENDRON
Laval

29 October 2015 - From 2:00 pm to 4:00 pm


Article TBD

Accounting & Management Control

Speaker: Yue LI
Rotman

19 June 2015 - From 2:00 pm to 4:00 pm


Article TBD

Accounting & Management Control

Speaker: Lakshmanan SHIVAKUMAR (Shiva°
LBS

29 May 2015 - From 2:00 pm to 4:00 pm


Article TBD

Accounting & Management Control

Speaker: Wendy ESPELAND

24 March 2015 - HEC Champerret - From 2:00 pm to 4:00 pm


Article TBD

Accounting & Management Control

Speaker: Donald MACKENZIE

20 March 2015 - From 2:00 pm to 4:00 pm


Article TBD

Accounting & Management Control

Speaker: Dan SEGAL
IDC Herzliya

13 March 2015 - From 2:00 pm to 4:00 pm


Article TBD

Accounting & Management Control

10 February 2015 - HEC Champerret - From 2:00 pm to 4:00 pm


Accounting & Management Control

Speaker: Irem TUNA
LBS

12 December 2014 - Room T017 - From 2:00 pm to 4:00 pm


Finance

Speaker: Bruno Biais
Toulouse School of Economics

11 December 2014


Intertemporal Discounting and Reference Durations

Marketing

Speaker: Florian STAHL
Professor of Marketing , University of Mannheim, Germany

9 December 2014 - Room T201 - From 2:00 pm to 3:30 pm


Intertemporal Discounting and Reference Durations

by Florian Stahl, Raghuram Iyengar, Yuxin Chen and Andreas Herrmann

Products and services are increasingly offered with contracts of different length. Consumers' choice of a specific contract involves an intertemporal decision, as they have to discount future utility. Given the long duration of some contracts, it is likely that consumers' instantaneous utility for a service is time dependent. We study individuals' discounting behavior allowing for changes in instantaneous utility. We gather experimental data from matching tasks and identify discounting patterns using a latent change-point model. Our results show that models with change-points fit individuals' discounting pattern significantly better than models without. There is also conceptual superiority of including change-points as these are highly correlated with durations that consumers may consider in their decisions (e.g., time till graduation). Interestingly, individuals' discounting pattern is consistent with exponential discounting in the absence of change-points but follows a hyperbolic discounting pattern when allowing consumers' instantaneous utility to change over time. Using a novel monetarily incentivized experimental setting, we show that individuals are not able to discount future outcomes without a bias towards the present even when they have an incentive to do so.