IDEAS home Printed from
   My bibliography  Save this paper

A note on the reward-loss duality in time consistent decisions


  • Nicola Dimitri



Individuals choosing among payoffs available at different points in time are considered as rational if they are time consistent. This occurs when their plans of actions are effectively implemented. With time consistent decision makers, the paper points out an interesting dual behavior related to, symmetric, rewards and losses. In a simplest two payoffs context rationality implies opting for a late (earlier), higher (lower), reward and an earlier (delayed), lower (higher) loss. Since rational agents either choose the highest or the lowest available payoff, this raises the question as to whether dynamic rationality has to do with patience or payoff concern.

Suggested Citation

  • Nicola Dimitri, 2007. "A note on the reward-loss duality in time consistent decisions," Department of Economic Policy, Finance and Development (DEPFID) University of Siena 008, Department of Economic Policy, Finance and Development (DEPFID), University of Siena.
  • Handle: RePEc:usi:depfid:008

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Shane Frederick & George Loewenstein & Ted O'Donoghue, 2002. "Time Discounting and Time Preference: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 351-401, June.
    Full references (including those not matched with items on IDEAS)


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

    Cited by:

    1. Valeria Faralla & Francesca Benuzzi & Fausta Lui & Patrizia Baraldi & Paolo Nichelli & Nicola Dimitri, 2010. "Gains and Losses: A Common Neural Network for Economic Behaviour," Labsi Experimental Economics Laboratory University of Siena 033, University of Siena.

    More about this item


    rewards; losses; time consistency.;

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:usi:depfid:008. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carlo Zappia). General contact details of provider: .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.