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Continuous quasi-hyperbolic discounting

Listed author(s):
  • Webb, Craig S.

This paper studies intertemporal choice in a dynamic framework with continuous time. A model called continuous quasi-hyperbolic discounting is considered, extending the popular quasi-hyperbolic discounting to an integral form. Dynamic preference axioms, time consistency and time invariance, are formulated and used to provide a foundation for an integral form of exponential discounting; the central model of dynamic, intertemporal choice in economics. A relaxation of the time consistency axiom, complementary time consistency, is formulated to provide a dynamic preference foundation for continuous quasi-hyperbolic discounting. A preference condition for present bias is also characterised in the context of the model.

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File URL: http://www.sciencedirect.com/science/article/pii/S030440681630009X
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Article provided by Elsevier in its journal Journal of Mathematical Economics.

Volume (Year): 64 (2016)
Issue (Month): C ()
Pages: 99-106

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Handle: RePEc:eee:mateco:v:64:y:2016:i:c:p:99-106
DOI: 10.1016/j.jmateco.2016.04.001
Contact details of provider: Web page: http://www.elsevier.com/locate/jmateco

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