Decreasing Impatience

Christopher P. Chambers, Federico Echenique, Alan D. Miller

Research output: Contribution to journalArticlepeer-review

Abstract

We characterize decreasing impatience, a common behavioral phenomenon in intertemporal choice. Discount factors that display decreasing impatience are characterized through a convexity axiom for investments at fixed interest rates. Then we show that they are equivalent to a geometric average of generalized quasi-hyperbolic discount rates. Finally, they emerge through parimutuel preference aggregation of exponential discount factors.

Original languageEnglish
Pages (from-to)527-551
Number of pages25
JournalAmerican Economic Journal: Microeconomics
Volume15
Issue number3
DOIs
StatePublished - 2023
Externally publishedYes

Bibliographical note

Publisher Copyright:
© (2023). All Rights Reserved.

ASJC Scopus subject areas

  • Economics, Econometrics and Finance (all)

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