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Hyperbolic discount curves: a reply to Ainslie

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  • Andrew Musau

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Abstract

Ainslie (Theory and Decision, 73, 3–34, 2012 ) challenges our interpretation of the properties of hyperbolic discount curves in an iterated prisoners’ dilemma (IPD) model. In this reply, we discuss the emergence of hyperbolic discount functions in the behavioral economics literature and evaluate their properties. Furthermore, we present a summarized version of our IPD model and evaluate Ainslie’s points of contention. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Andrew Musau, 2014. "Hyperbolic discount curves: a reply to Ainslie," Theory and Decision, Springer, vol. 76(1), pages 9-30, January.
  • Handle: RePEc:kap:theord:v:76:y:2014:i:1:p:9-30
    DOI: 10.1007/s11238-013-9361-8
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    References listed on IDEAS

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    More about this item

    Keywords

    Hyperbolic; Discount function; Iterated prisoners’ dilemma; C72; C73; D90;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

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