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The bargaining within

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  • Xue, Licun

Abstract

This short paper shows that intrapersonal bargaining in a dual-self model can be used to provide a foundation for quasi-hyperbolic discounting model popularized by Laibson [Laibson, David (1994), "Essays in Hyperbolic Discounting," Ph.D. dissertation, MIT., Laibson, David (1997), "Golden Eggs and Hyperbolic Discounting," Quarterly Journal of Economics, 112, 443-477].

Suggested Citation

  • Xue, Licun, 2008. "The bargaining within," Economics Letters, Elsevier, vol. 101(2), pages 145-147, November.
    • Handle: RePEc:eee:ecolet:v:101:y:2008:i:2:p:145-147
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    References listed on IDEAS

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    1. David K. Levine & Drew Fudenberg, 2006. "A Dual-Self Model of Impulse Control," American Economic Review, American Economic Association, vol. 96(5), pages 1449-1476, December.
    2. R. H. Strotz, 1955. "Myopia and Inconsistency in Dynamic Utility Maximization," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 23(3), pages 165-180.
    3. Myerson, Roger B, 1981. "Utilitarianism, Egalitarianism, and the Timing Effect in Social Choice Problems," Econometrica, Econometric Society, vol. 49(4), pages 883-897, June.
    4. Ariel Rubinstein, 2003. ""Economics and Psychology"? The Case of Hyperbolic Discounting," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(4), pages 1207-1216, November.
    5. Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
    6. Partha Dasgupta & Eric Maskin, 2005. "Uncertainty and Hyperbolic Discounting," American Economic Review, American Economic Association, vol. 95(4), pages 1290-1299, September.
    7. George Loewenstein & Drazen Prelec, 1992. "Anomalies in Intertemporal Choice: Evidence and an Interpretation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 573-597.
    8. Thomson, William, 1981. "Nash's Bargaining Solution and Utilitarian Choice Rules," Econometrica, Econometric Society, vol. 49(2), pages 535-538, March.
    9. David Laibson, 1997. "Golden Eggs and Hyperbolic Discounting," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(2), pages 443-478.
    10. David I. Laibson, 1996. "Hyperbolic Discount Functions, Undersaving, and Savings Policy," NBER Working Papers 5635, National Bureau of Economic Research, Inc.
    11. Christian Gollier & Richard Zeckhauser, 2005. "Aggregation of Heterogeneous Time Preferences," Journal of Political Economy, University of Chicago Press, vol. 113(4), pages 878-896, August.
    12. Paul A. Samuelson, 1937. "A Note on Measurement of Utility," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 4(2), pages 155-161.
    13. E. S. Phelps & R. A. Pollak, 1968. "On Second-Best National Saving and Game-Equilibrium Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 35(2), pages 185-199.
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    Cited by:

    1. Na Young Park, 2018. "OCD and Errors in Financial Decisions," Economics Bulletin, AccessEcon, vol. 38(4), pages 1970-1977.
    2. Park, Na Young, 2016. "Domain-specific risk preference and cognitive ability," Economics Letters, Elsevier, vol. 141(C), pages 1-4.
    3. Lu, Shih En, 2016. "Models of limited self-control: Comparison and implications for bargaining," Economics Letters, Elsevier, vol. 145(C), pages 186-191.

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