Manzini, Paola; Mariotti, Marco - In: Advances in Theoretical Economics 6 (2006) 1, pp. 1265-1265
We propose a novel approach to modelling time preferences, based on a cognitive shortcoming of human decision makers: the perception of future events becomes increasingly `blurred' as the events are pushed further in time. Our model explains behavioural `anomalies' such as preference reversal...
