sophisticated bargainers have time preferences that exhibit a form of present bias - satisfied by the hyperbolic and quasi … empirically documented; they can also arise when parties who weight probabilities non-linearly bargain under the shadow of … exogenous breakdown risk, as well as in settings of intergenerational bargaining with imperfect altruism. The paper's main …

In the last twenty years a growing body of experimental evidence has posed a challenge to the standard Exponential … declining discount rates, leading to the formulation of the model of hyperbolic discounting which is finding increasing favour … in the literature. In this paper we provide a survey of both the theoretical modelling and the experimental evidence …

The author analyzes the optimal investment in environmental protection in a model of an infinite series of non … agents prefer further investment in the long run, yet neither present nor future agents will actually ever invest. Such an … outcome is not only unsatisfactory for each generation but may also be inefficient in a Pareto sense. The author's results are …