Inequality aversion, social discount, and time discount rates
Purpose ‐ This paper aims to conduct a hypothetical dictator game with social distance and time delays using conjoint analysis. Design/methodology/approach ‐ Responses from 1,347 Japanese adults are collected through an online survey,
and their responses are analyzed using a random parameter logit model. Findings ‐ The paper finds that social preference for the present income of a stranger equals social preference for the income of an acquaintance 140 days later, of a close friend 224 days later,
and of a family member 255 days later. Originality/value ‐ The paper simultaneously estimates social preference parameters, including the inequality aversion rate, the social discount rate, and the time discount rate.
Keywords: Individual behaviour; Inequality aversion; Japan; Social discount; Stochastic games; Time discount
Document Type: Research Article
Publication date: 06 April 2012
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