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.
Bibliographical noteFunding Information:
* Chambers: Department of Economics, Georgetown University (email: christopher.chambers@georgetown. edu); Echenique: Department of Economics, University of California, Berkeley (email: email@example.com); Miller: Faculty of Law, Western University (email: firstname.lastname@example.org). Leslie Marx was coeditor for this article. Echenique thanks the National Science Foundation for financial support (grants SES-1558757 and CNS-518941). This research was undertaken, in part, thanks to funding from the Canada Research Chairs program. We are grateful to Chris Shannon and four anonymous referees for useful comments and suggestions.
© (2023). All Rights Reserved.
ASJC Scopus subject areas
- Economics, Econometrics and Finance (all)