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Intermittent Discounting

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  • Alexis Direr

    (LEO - Laboratoire d'Économie d'Orleans [UMR7322] - UO - Université d'Orléans - UT - Université de Tours - CNRS - Centre National de la Recherche Scientifique)

Abstract

A novel theory of time discounting is proposed in which future consumption is less valuable than present consumption because of waiting costs. Waiting is intermittent as individuals' attention is periodically distracted away from future gratifications. The more individuals expect to pay attention to the reward, the more they are impatient. The model revisits the fundamental link between short and long-term impatience and solves two behavioral anomalies: impatience over short durations and sub-additive discounting.

Suggested Citation

  • Alexis Direr, 2020. "Intermittent Discounting," Working Papers hal-02167093, HAL.
    • Handle: RePEc:hal:wpaper:hal-02167093
    Note: View the original document on HAL open archive server: https://hal.science/hal-02167093v3
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    References listed on IDEAS

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    Keywords

    sub-additive discounting; present bias; short-term impatience; time preference;
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