IDEAS home Printed from https://ideas.repec.org/a/eee/matsoc/v56y2008i1p144-147.html

Corrigendum to "A note on the Loewenstein-Prelec theory of intertemporal choice" [Math. Social Sci. 52 (1) (2006) 99-108]

Author

Listed:
  • al-Nowaihi, Ali
  • Dhami, Sanjit

Abstract

In a critique of the Loewenstein and Prelec [Loewenstein G., Prelec D., 1992. Anomalies in intertemporal choice: Evidence and an interpretation. The Quarterly Journal of Economics 107, 573-597] theory of intertemporal choice, [al-Nowaihi, A., Dhami, S., 2006. A note on the Loewenstein-Prelec theory of intertemporal choice. Mathematical Social Sciences 52, 99-108] point out four errors. One of the alleged errors was that the elasticity of the value function in prospect theory is decreasing. But it is in fact increasing. We provide a correction and a formal proof. As a corollary, we show that the elasticity of the value function is bounded between zero and one. Nevertheless, all the remaining points in [al-Nowaihi, A., Dhami, S., 2006. A note on the Loewenstein-Prelec theory of intertemporal choice. Mathematical Social Sciences 52, 99-108] remain valid

Suggested Citation

  • al-Nowaihi, Ali & Dhami, Sanjit, 2008. "Corrigendum to "A note on the Loewenstein-Prelec theory of intertemporal choice" [Math. Social Sci. 52 (1) (2006) 99-108]," Mathematical Social Sciences, Elsevier, vol. 56(1), pages 144-147, July.
    • Handle: RePEc:eee:matsoc:v:56:y:2008:i:1:p:144-147
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0165-4896(08)00031-0
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nina Anchugina & Matthew Ryan & Arkadii Slinko, 2016. "Aggregating time preferences with decreasing impatience," Papers 1604.01819, arXiv.org.
    2. Pushpa, Rathie & Carlos, Radavelli & Sergio, Da Silva, 2006. "Sharpening Intertemporal Prospect Theory," MPRA Paper 1849, University Library of Munich, Germany.
    3. Anchugina, Nina & Ryan, Matthew & Slinko, Arkadii, 2017. "Hyperbolic discounting of the far-distant future," Economics Letters, Elsevier, vol. 155(C), pages 140-143.
    4. Ali al-Nowaihi & Sanjit Dhami, 2013. "Foundations and Properties of Time Discount Functions," Discussion Papers in Economics 13/27, Division of Economics, School of Business, University of Leicester.
    5. Ali al-Nowaihi & Sanjit Dhami, 2013. "A Theory of Reference Time," Discussion Papers in Economics 13/26, Division of Economics, School of Business, University of Leicester.
    6. Lidia Ceriani & Chiara Gigliarano, 2015. "An Inter-temporal Relative Deprivation Index," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 124(2), pages 427-443, November.
    7. Ali al-Nowaihi & Sanjit Dhami, 2008. "A general theory of time discounting: The reference-time theory of intertemporal choice," Discussion Papers in Economics 08/34, Division of Economics, School of Business, University of Leicester.
    8. Ali al-Nowaihi & Sanjit Dhami, 2018. "Foundations for Intertemporal Choice," CESifo Working Paper Series 6913, CESifo.
    9. Ali al-Nowaihi & Sanjit Dhami, 2007. "Increasing elasticity of the value function in the Loewenstein-Prelec theory of intertemporal choice," Discussion Papers in Economics 07/13, Division of Economics, School of Business, University of Leicester.
    10. Ali al-Nowaihi & Sanjit Dhami, 2006. "A Note On Generalized Hyperbolic Discounting," Discussion Papers in Economics 06/10, Division of Economics, School of Business, University of Leicester.
    11. Scholten, Marc & Read, Daniel, 2006. "Beyond discounting: the tradeoff model of intertemporal choice," LSE Research Online Documents on Economics 22710, London School of Economics and Political Science, LSE Library.
    12. Ali al-Nowaihi & Sanjit Dhami, 2021. "Preferences over Time and under Uncertainty: Theoretical Foundations," CESifo Working Paper Series 9215, CESifo.
    13. Ali al-Nowaihi & Sanjit Dhami, 2007. "Explaining the anomalies of the exponential discounted utility model," Discussion Papers in Economics 07/09, Division of Economics, School of Business, University of Leicester.
    14. Strohhecker, Jürgen & Größler, Andreas, 2013. "Do personal traits influence inventory management performance?—The case of intelligence, personality, interest and knowledge," International Journal of Production Economics, Elsevier, vol. 142(1), pages 37-50.
    15. repec:dau:papers:123456789/6511 is not listed on IDEAS

    More about this item

    JEL classification:

    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:matsoc:v:56:y:2008:i:1:p:144-147. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505565 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.