A note on the Loewenstein–Prelec theory of intertemporal choice
- 作者：Ali al-Nowaihi and Sanjit Dhami
- 关键词：Anomalies of the DU model ; Intertemporal choice ; Generalized hyperbolic discounting ; Prospect theory
- 刊名：Mathematical Social Sciences
- 出版年：2006
- 期刊代码：41_01654896
- 类别：mt
- 出版时间：July 2006
- 卷：52
- 期：1
- 页码：99-108
- 文件大小：133 K
摘要
In one of the major contributions to behavioral economics, Loewenstein and Prelec [Loewenstein, G., Prelec, D., 1992. Anomalies in intertemporal choice: evidence and an interpretation. The Quarterly Journal of Economics 107, 573–597] set the foundations for the behavioral approach to decision making over time. We correct a number of errors in Loewenstein and Prelec (1992). Furthermore, we provide a correct, more direct and simpler derivation of their generalized hyperbolic discounting formula that has formed the basis of much recent work on temporal choice.