Time discounting: Declining impatience and interval effect
نویسندگان
چکیده
منابع مشابه
Decreasing impatience and the magnitude effect jointly contradict exponential discounting
The experimental literature on time preference nds that the manner in which subjects discount money (as opposed to utility) exhibits properties known as Decreasing Impatience and the Magnitude Effect. While these ndings are often referred to as anomalies for the Exponential Discounting model, several authors have demonstrated that each of these qualitative ndings can be explained by the curv...
متن کاملDecreasing Impatience: A Criterion for Non-stationary Time Preference and ‘‘Hyperbolic’’ Discounting
Despite recent interest in hyperbolic discounting, there has been little discussion of exactly what property of time preferences is instantiated by hyperbolic or quasi-hyperbolic functional forms. The paper revives an earlier proposal in Prelec (1989) that the key property is Pratt– Arrow convexity of the log of the discount function, which corresponds to decreasing impatience (DI) at the level...
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This paper pursues two aims by conducting economic experiments in Shanghai. One aim of this paper is to investigate the following three anomalies on time discounting: the delay, interval, and magnitude effects. We confirmed all the three anomalies. Particularly, by separating the delay effect from the interval effect, the delay effect is found when the delay is relatively short, which has seldo...
متن کاملIs time-discounting hyperbolic or subadditive
Subadditive time discounting means that discounting over a delay is greater when the delay is divided into subintervals than when it is left undivided. This may produce the most important result usually attributed to hyperbolic discounting: declining impatience, or the inverse relationship between the discount rate and the magnitude of the delay. Three choice experiments were conducted to test ...
متن کاملTime Discounting and Time Consistency
Time discounting is the phenomenon that a desired result in the future is perceived as less valuable than the same result now. Economic theories can take this psychological fact into account in several ways. In the economic literature the most widely used type of additive time discounting is exponential discounting. In exponential discounting, the fall of valuation depends by a constant factor ...
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ژورنال
عنوان ژورنال: Journal of Risk and Uncertainty
سال: 2009
ISSN: 0895-5646,1573-0476
DOI: 10.1007/s11166-009-9073-1