A New Approach to Intertemporal Choice: The Delay Function
The framework of this paper is intertemporal choice, which traditionally has been studied with preference relations and discount functions. However, the interest of econophysics in this topic makes time become a central magnitude. Therefore, the aim of this paper is to introduce the concept of delay...
| 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/10835/8263 |
| _version_ | 1789406564164042752 |
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| author | Cruz Rambaud, Salvador González Fernández, Isabel |
| author_facet | Cruz Rambaud, Salvador González Fernández, Isabel |
| author_sort | Cruz Rambaud, Salvador |
| collection | DSpace |
| description | The framework of this paper is intertemporal choice, which traditionally has been studied with preference relations and discount functions. However, the interest of econophysics in this topic makes time become a central magnitude. Therefore, the aim of this paper is to introduce the concept of delay function and, by using this tool, to analyze the concept of impatience and the different types of inconsistency. In behavioral finance, consistency is correlated with the concept of symmetry because, in this case, the indifference between two rewards does not change when the same delay is added to their respective availability dates. Moreover, we have shown the way to derive a discount (respectively, delay) function starting from the expression of its corresponding delay (respectively, discount) function by requiring some suitable conditions for this construction. Finally, we have deduced the concept of instantaneous variation rate and Prelec’s measure of inconsistency in terms of the delay function. |
| format | info:eu-repo/semantics/article |
| id | oai:repositorio.ual.es:10835-8263 |
| institution | Universidad de Cuenca |
| language | English |
| publishDate | 2020 |
| publisher | MDPI |
| record_format | dspace |
| spelling | oai:repositorio.ual.es:10835-82632023-04-12T19:08:02Z A New Approach to Intertemporal Choice: The Delay Function Cruz Rambaud, Salvador González Fernández, Isabel econophysics intertemporal choice delay function inconsistency increasing impatience moderately decreasing impatience strongly decreasing impatience The framework of this paper is intertemporal choice, which traditionally has been studied with preference relations and discount functions. However, the interest of econophysics in this topic makes time become a central magnitude. Therefore, the aim of this paper is to introduce the concept of delay function and, by using this tool, to analyze the concept of impatience and the different types of inconsistency. In behavioral finance, consistency is correlated with the concept of symmetry because, in this case, the indifference between two rewards does not change when the same delay is added to their respective availability dates. Moreover, we have shown the way to derive a discount (respectively, delay) function starting from the expression of its corresponding delay (respectively, discount) function by requiring some suitable conditions for this construction. Finally, we have deduced the concept of instantaneous variation rate and Prelec’s measure of inconsistency in terms of the delay function. 2020-05-27T08:37:11Z 2020-05-27T08:37:11Z 2020-05-13 info:eu-repo/semantics/article 2073-8994 http://hdl.handle.net/10835/8263 en https://www.mdpi.com/2073-8994/12/5/807 Attribution-NonCommercial-NoDerivatives 4.0 Internacional http://creativecommons.org/licenses/by-nc-nd/4.0/ info:eu-repo/semantics/openAccess MDPI |
| spellingShingle | econophysics intertemporal choice delay function inconsistency increasing impatience moderately decreasing impatience strongly decreasing impatience Cruz Rambaud, Salvador González Fernández, Isabel A New Approach to Intertemporal Choice: The Delay Function |
| title | A New Approach to Intertemporal Choice: The Delay Function |
| title_full | A New Approach to Intertemporal Choice: The Delay Function |
| title_fullStr | A New Approach to Intertemporal Choice: The Delay Function |
| title_full_unstemmed | A New Approach to Intertemporal Choice: The Delay Function |
| title_short | A New Approach to Intertemporal Choice: The Delay Function |
| title_sort | new approach to intertemporal choice: the delay function |
| topic | econophysics intertemporal choice delay function inconsistency increasing impatience moderately decreasing impatience strongly decreasing impatience |
| url | http://hdl.handle.net/10835/8263 |
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