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Dynamic consistent alpha-maxim expected utility

Beißner, Patrick; Lin, Qian - 2015

We establish a class of fully nonlinear conditional expectations. Similarly to the usage of linear expectations when a probabilistic description of uncertainty is present, we observe analogue quantitative and qualitative properties. The type of nonlinearity captures the agents sentiments of...

Persistent link: https://www.econbiz.de/10010477162

Does 'Better' Discounting Lead to 'Worse' Outcomes in Long-Run Decisions? The Dilemma of Hyperbolic Discounting

Winkler, Ralph - 2008

The shortcomings of conventional discounting, especially in the context of long-run environmental problems, have been extensively discussed in the literature. Recently, hyperbolic discounting, i.e. discounting at declining instead of constant discount rates, has attracted a lot of interest among...

Persistent link: https://www.econbiz.de/10014051711

Resource conservation across generations in a Ramsey-Chichilnisky model

Asheim, Geir B.; Ekeland, Ivar - 2015 - This version October 13, 2015

The Chichilnisky criterion is an explicit social welfare function that satisﬁes compelling conditions of intergenerational equity. However, it is time inconsistent and has no optimal solution in the Ramsey model. By investigating stationary Markov equilibria in the game that generations with...

Persistent link: https://www.econbiz.de/10011373321

Optimal discretization for decision analysis

Woodruff, Joshua; Dimitrov, Nedialko B. - In: Operations research perspectives 5 (2018), pp. 288-305

The use of discretization in decision analysis allows practitioners to use only a few assessments to estimate the … certain equivalent (CE) or expected value of a decision without knowing the functional form of the distribution of each … mind. The discretizations are not formulated with the decision problem in mind. Each discretization is specific to one …

Persistent link: https://www.econbiz.de/10011957275

Intertemporal altruism

Chopra, Felix; Eisenhauer, Philipp; Falk, Armin; … - 2021

Standard consumption utility is linked in time to a consumption event, whereas the timing of prosocial utility flows is ambiguous. Prosocial utility may depend on the actual utility consequences for others - it is consequence-dated - or it may be related to the act of giving and is thus...

Persistent link: https://www.econbiz.de/10012419311

Some Comments on Time-Inconsistency in a Game with Absentmindedness

Dimitri, Nicola - 2000

In decision problems with absentmindedness the decision maker may manifest time-inconsistent choices in spite of … unaltered preferences. In this paper we argue that this can be the case whenever the decision makeris reasoning is not … conditional expected payoff at all decision nodes …

Persistent link: https://www.econbiz.de/10014159780

Time (In)Consistent Food Choice of Children and Teenagers

Bucher-Koenen, Tabea - 2012

We document an increasing capacity to resist temptation in a time consistent manner from children to teenagers. Competencies develop in two steps: From age 8 on many pupils naively plan and after age 12 successfully implement strategies to resist temptation. Our evidence comes from a food choice...

Persistent link: https://www.econbiz.de/10013109899

Time (in)consistent food choice of children and teenagers

Bucher-Koenen, Tabea; Schmidt, Carsten - 2011

Persistent link: https://www.econbiz.de/10009522785

A note on the welfare of a sophisticated time-inconsistent decision-maker

Kodritsch, Sebastian - 2015

general decision problems with perfect information, I establish two results: first, for finite-horizon problems without … indifference, essential consistency (Hammond [1976]) is sufficient for choice to be Pareto-optimal. Second, if the decision problem …

Persistent link: https://www.econbiz.de/10010478990

Time Inconsistent Preferences and the Annuitization Decision

Schreiber, Philipp - 2016

Good news can involve difficult decisions. For example winning a lottery jackpot can go along with the decision … most people face the decision whether they want their defined contribution account balance paid as a lump sum or to … inconsistently. Our findings suggest to think about precommitment devices for the annuitization decision, in the retirement case …

Persistent link: https://www.econbiz.de/10013007684