MENTAL DISCOUNTING AND FINANCIAL STRATEGIES

Subjective discount rates have been used as measures of time preferenc e to explain saving behavior, with varying results. There is also a la ck of agreement between different explanatory models of subjective dis count rates. In this paper, it is argued that a better understanding o f subjective discount rates can be reached by using groups with differ ent financial strategies as domains. It is shown by PLS and regression analyses that the mental discounting process differs between groups p racticing different financial strategies and that the explained varian ce of subjective discount rates and thus the understanding of such rat es are improved by using financial strategy groups as domains.