14 novembre 2017 Alexis DIRER
(Univ. Orléans, CNRS, LEO, UMR 7322 and Paris School of Economics)
A novel theory of time discounting is proposed in which future consumption is less valuable than present one due to waiting costs incurred within the time interval.
Waiting is intermittent as consumer’s attention is periodically distracted away from future gratifications.
The model replicates three important features of intertemporal preferences : (i) present bias, the propensity to prefer immediate gratification to future ones, (ii) decreasing impatience, a decrease of the rate at which an outcome is discounted as the time horizon gets longer and (iii) subadditive discounting, according to which a sequence of trade-offs in a subdivided interval leads to more overall discounting than a single trade-off over the whole interval.
Two dimensions of impatience are distinguished : pure pure preference for the present and frequency of temptations.
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