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 language | English |
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Pages (from-to) | 527-551 |
Number of pages | 25 |
Journal | American Economic Journal: Microeconomics |
Volume | 15 |
Issue number | 3 |
DOIs | |
State | Published - 2023 |
Externally published | Yes |
Bibliographical note
Publisher Copyright:© (2023). All Rights Reserved.
ASJC Scopus subject areas
- General Economics, Econometrics and Finance