This paper examines an Epstein-Zin recursive utility with quasi-hyperbolic discounting in continuous time. I directly … define the utility process and consider a Merton's optimal consumption-investment problem for application. I show that a … analysis shows that, unlike in the constant relative risk aversion utility, present bias in the Epstein-Zin utility causes …

/exponential discounting) when utility function is linear. DIU has several advantages over discounted utility (and its generalizations — quasi …-hyperbolic and generalized hyperbolic discounting): a) time preferences are continuous; b) utility does not increase when a larger … received in an uncertain future. "Discounted incremental utility" (DIU) model of intertemporal choice parallels expected …

Samuelson's discounted utility (constant/exponential discounting) when utility function is linear. DIU has several advantages … over discounted utility (and its generalizations — quasi-hyperbolic and generalized hyperbolic discounting): a) time …A new model of intertemporal choice — "discounted incremental utility" (DIU) — is presented. DIU coincides with …

The discount rate is a tool used to measure the preference for immediate gratification or utility over delayed … gratification. This paper considers the modified Merton problem of an economic agent maximizing his utility from consumption and … utility weighted discount rate. This last quantity is shown to be the solution of a fixed point problem …

robust violations of discounted expected utility, inconsistent with both prospect theory probability weighting and models …Risk and time are intertwined. The present is known while the future is inherently risky. Discounted expected utility …

robust violations of discounted expected utility, inconsistent with both prospect theory probability weighting and models …Risk and time are intertwined. The present is known while the future is inherently risky. Discounted expected utility …