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A note on generalized hyperbolic discounting

By Ali al-Nowaihi and Sanjit Dhami

Abstract

In a major contributions to behavioral economics, Loewenstein and Prelec (1992)\ud set the foundations for the behavioral approach to decision making over time and derive\ud the generalized hyperbolic discounting formula. Here we show that their assumption\ud ‘common difference effect with quadratic delay’ cannot be weakened to ‘common\ud difference effect

Topics: Intertemporal choice, Generalized hyperbolic discounting
Publisher: Dept. of Economics, University of Leicester
Year: 2006
OAI identifier: oai:lra.le.ac.uk:2381/7441

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Citations

  1. (2006). A Note on the Loewenstein-Prelec Theory of Intertemporal Choice. doi
  2. (1992). Anomalies in Intertemporal Choice : Evidence and an Interpretation. doi
  3. (1997). Golden Eggs and Hyperbolic Discounting. doi
  4. (1968). On Second-Best National Saving and Game-Equilibrium Growth. doi

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