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Decreasing Impatience

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  • Christopher P. Chambers
  • Federico Echenique
  • Alan D. Miller

Abstract

We characterize decreasing impatience, a common behavioral phenomenon in intertemporal choice. 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.

Suggested Citation

  • Christopher P. Chambers & Federico Echenique & Alan D. Miller, 2023. "Decreasing Impatience," American Economic Journal: Microeconomics, American Economic Association, vol. 15(3), pages 527-551, August.
    • Handle: RePEc:aea:aejmic:v:15:y:2023:i:3:p:527-51
    DOI: 10.1257/mic.20210361
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    Other versions of this item:

    • Christopher P. Chambers & Federico Echenique & Alan D. Miller, 2021. "Decreasing Impatience," Papers 2103.03290, arXiv.org, revised Aug 2022.

    References listed on IDEAS

    as
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    Cited by:

    1. Dong-Xuan, Bach & Qu, Xiangyu, 2025. "Restricted dominant unanimity and social discounting," Journal of Mathematical Economics, Elsevier, vol. 117(C).

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    More about this item

    JEL classification:

    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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