A Note On Generalized Hyperbolic Discounting
In a major contributions to behavioral economics, Loewenstein and Prelec (1992) set the foundations for the behavioral approach to decision making over time and derive the generalized hyperbolic discounting formula. Here we show that their assumption ‘common difference effect with quadratic delay’ cannot be weakened to ‘common difference effect’.
|Date of creation:||Aug 2006|
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- al-Nowaihi, Ali & Dhami, Sanjit, 2006.
"A note on the Loewenstein-Prelec theory of intertemporal choice,"
Mathematical Social Sciences,
Elsevier, vol. 52(1), pages 99-108, July.
- Ali al-Nowaihi & Sanjit Dhami, 2005. "A Note On The Loewenstein-Prelec Theory Of Intertemporal Choice," Discussion Papers in Economics 05/18, Department of Economics, University of Leicester.
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