Delay Effect and Subadditivity. Proposal of a New Discount Function: The Asymmetric Exponential Discounting
The framework of this paper is intertemporal choice and, more specifically, the so-called delay effect. Traditionally, this anomaly, also known as decreasing impatience, has been revealed when individuals reverse their preferences over monetary or non-monetary rewards. In this manuscript, we will an...
| Main Authors: | , |
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| Format: | info:eu-repo/semantics/article |
| Language: | English |
| Published: |
MDPI
2020
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10835/7856 |
| _version_ | 1789406606820114432 |
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| author | Cruz Rambaud, Salvador Ortiz Fernández, Piedad |
| author_facet | Cruz Rambaud, Salvador Ortiz Fernández, Piedad |
| author_sort | Cruz Rambaud, Salvador |
| collection | DSpace |
| description | The framework of this paper is intertemporal choice and, more specifically, the so-called delay effect. Traditionally, this anomaly, also known as decreasing impatience, has been revealed when individuals reverse their preferences over monetary or non-monetary rewards. In this manuscript, we will analyze the delay effect by using preference relations and discount functions. The treatment of the delay effect with discount functions exhibits several scenarios for this paradox. Thus, the objective of this paper is to deduce the different expressions of the delay effect and their mathematical characterizations by using discount functions in stationary and dynamic settings. In this context, subadditivity will be derived as a particular case of decreasing impatience. Finally, we will introduce a new discount function, the so-called asymmetric exponential discount function, able to describe decreasing impatience. |
| format | info:eu-repo/semantics/article |
| id | oai:repositorio.ual.es:10835-7856 |
| institution | Universidad de Cuenca |
| language | English |
| publishDate | 2020 |
| publisher | MDPI |
| record_format | dspace |
| spelling | oai:repositorio.ual.es:10835-78562023-04-12T19:08:32Z Delay Effect and Subadditivity. Proposal of a New Discount Function: The Asymmetric Exponential Discounting Cruz Rambaud, Salvador Ortiz Fernández, Piedad intertemporal choice delay effect decreasing impatience inconsistency discount function subadditivity The framework of this paper is intertemporal choice and, more specifically, the so-called delay effect. Traditionally, this anomaly, also known as decreasing impatience, has been revealed when individuals reverse their preferences over monetary or non-monetary rewards. In this manuscript, we will analyze the delay effect by using preference relations and discount functions. The treatment of the delay effect with discount functions exhibits several scenarios for this paradox. Thus, the objective of this paper is to deduce the different expressions of the delay effect and their mathematical characterizations by using discount functions in stationary and dynamic settings. In this context, subadditivity will be derived as a particular case of decreasing impatience. Finally, we will introduce a new discount function, the so-called asymmetric exponential discount function, able to describe decreasing impatience. 2020-03-17T11:58:43Z 2020-03-17T11:58:43Z 2020-03-06 info:eu-repo/semantics/article 2227-7390 http://hdl.handle.net/10835/7856 en https://www.mdpi.com/2227-7390/8/3/367 Attribution-NonCommercial-NoDerivatives 4.0 Internacional http://creativecommons.org/licenses/by-nc-nd/4.0/ info:eu-repo/semantics/openAccess MDPI |
| spellingShingle | intertemporal choice delay effect decreasing impatience inconsistency discount function subadditivity Cruz Rambaud, Salvador Ortiz Fernández, Piedad Delay Effect and Subadditivity. Proposal of a New Discount Function: The Asymmetric Exponential Discounting |
| title | Delay Effect and Subadditivity. Proposal of a New Discount Function: The Asymmetric Exponential Discounting |
| title_full | Delay Effect and Subadditivity. Proposal of a New Discount Function: The Asymmetric Exponential Discounting |
| title_fullStr | Delay Effect and Subadditivity. Proposal of a New Discount Function: The Asymmetric Exponential Discounting |
| title_full_unstemmed | Delay Effect and Subadditivity. Proposal of a New Discount Function: The Asymmetric Exponential Discounting |
| title_short | Delay Effect and Subadditivity. Proposal of a New Discount Function: The Asymmetric Exponential Discounting |
| title_sort | delay effect and subadditivity. proposal of a new discount function: the asymmetric exponential discounting |
| topic | intertemporal choice delay effect decreasing impatience inconsistency discount function subadditivity |
| url | http://hdl.handle.net/10835/7856 |
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