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We study time preferences by means of a longitudinal lab experiment involving both monetary and non-monetary rewards … imposing any structural assumption on the instantaneous utility, intertemporal utility or the discounting functions. We find … assumption that discounting is consistent across domains can lead to non-negligible prediction errors in models involving non …
Persistent link: https://www.econbiz.de/10012596211
I derive a social planner's optimal information design in an environment with quasi-hyperbolic discounting consumers …
Persistent link: https://www.econbiz.de/10011902726
)actions, the more weight they receive. If uncertainty is endogenous to the decision process, the new rationale for discounting will … preference ; discounting ; uncertainty ; expected utility ; recursive utility ; risk aversion ; intertemporal substitutability …
Persistent link: https://www.econbiz.de/10009533970
, including quasi-hyperbolic discounting (Phelps and Pollack (1968) [18]; Laibson (1997) [12]). Finally, the paper provides a …
Persistent link: https://www.econbiz.de/10010197485
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 … for immediate outcomes if the assumption of constant/exponential discounting is relaxed. An application to intertemporal …
Persistent link: https://www.econbiz.de/10013020318
models of dynamic inconsistency (such as quasi-hyperbolic discounting and generalized hyperbolic discounting). The proposed …
Persistent link: https://www.econbiz.de/10013078264
/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 …
Persistent link: https://www.econbiz.de/10013054440
corresponding demand for commitment can be observed even if individuals do not exhibit horizon-specific discounting. In addition …, good-specific discounting, under certain conditions, can explain the persistence of poverty and low savings by the poor …
Persistent link: https://www.econbiz.de/10013099793
Persistent link: https://www.econbiz.de/10012309432
In this paper we study the problem of indifference pricing in a discrete‐time setting where the decision‐maker's preferences are represented by a general monotone increasing and quasiconcave dynamic preference functional. We show that the indifference price is a dynamic convex risk measure...
Persistent link: https://www.econbiz.de/10013011503