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In this paper, we present a time-varying and non-stationary but non-hyperbolic discount function that explains dynamic preference reversal. The new discount function emerges from an analysis of intertemporal consumption and… Click to show full abstract
In this paper, we present a time-varying and non-stationary but non-hyperbolic discount function that explains dynamic preference reversal. The new discount function emerges from an analysis of intertemporal consumption and savings choices with mortality risk and an altruistic factor. Our analysis shows that the process of updating survival information may also account for dynamic preference reversal.
Keywords:
dynamic preference;
non hyperbolic;
preference reversal;
hyperbolic discounting
Journal Title: Theory and Decision
Year Published: 2019
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Journal Title: Theory and Decision
Year Published: 2019
Link to full text (if available)
Share on Social Media: Sign Up to like & get
recommendations!