Published July 7, 2022
| Submitted
Report
Open
Decreasing Impatience
Abstract
We characterize decreasing impatience, a common behavioral phenomenon in intertemporal choice, and a property with certain normative support in the literature on project evaluation. Discount factors that display decreasing impatience are characterized through a convexity axiom for investments at fixed interest rates. Then we show that they are equivalent to a geometric average of generalized quasi-hyperbolic discount rates. Finally, they emerge through parimutuel preference aggregation of exponential discount factors.
Additional Information
Echenique thanks the National Science Foundation for financial support (Grants SES-1558757 and CNS-518941). This research was undertaken, in part, thanks to funding from the Canada Research Chairs program. We are grateful to Chris Shannon, Leslie Marx, and four anonymous referees for useful comments and suggestions.Attached Files
Submitted - 2103.03290.pdf
Files
2103.03290.pdf
Files
(339.9 kB)
| Name | Size | Download all |
|---|---|---|
|
md5:fb8106c6e1d6ed12463b7ac436189ca3
|
339.9 kB | Preview Download |
Additional details
- Eprint ID
- 115365
- Resolver ID
- CaltechAUTHORS:20220707-170530700
- SES-1558757
- NSF
- CNS-518941
- NSF
- Canada Research Chairs Program
- Created
-
2022-07-07Created from EPrint's datestamp field
- Updated
-
2023-06-02Created from EPrint's last_modified field