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Intertemporal Choice with Continuity Constraints

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  • Marcus Pivato

    (THEMA - Théorie économique, modélisation et applications - CNRS - Centre National de la Recherche Scientifique - CY - CY Cergy Paris Université)

Abstract

We consider a model of intertemporal choice where time is a continuum, the set of instantaneous outcomes (e.g., consumption bundles) is a topological space, and intertemporal plans (e.g., consumption streams) must be continuous functions of time. We assume that the agent can form preferences over plans defined on open time intervals. We axiomatically characterize the intertemporal preferences that admit a representation via discounted utility integrals. In this representation, the utility function is continuous and unique up to positive affine transformations, and the discount structure is represented by a unique Riemann–Stieltjes integral plus a unique linear functional measuring the long-run asymptotic utility.

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  • Marcus Pivato, 2021. "Intertemporal Choice with Continuity Constraints," Post-Print hal-03637876, HAL.
    • Handle: RePEc:hal:journl:hal-03637876
    DOI: 10.1287/moor.2020.1091
    Note: View the original document on HAL open archive server: https://hal.science/hal-03637876
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    Keywords

    Intertemporal choice; intergenerational social choice; technological feasibility; continuous utility; Stone-Čech compactification.;
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