Decreasing Impatience

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

doi:10.1257/MIC.20210361

Decreasing Impatience

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

Research output: Contribution to journal › Article › peer-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 language	English
Pages (from-to)	527-551
Number of pages	25
Journal	American Economic Journal: Microeconomics
Volume	15
Issue number	3
DOIs	https://doi.org/10.1257/MIC.20210361
State	Published - 2023
Externally published	Yes

Bibliographical note

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

ASJC Scopus subject areas

General Economics, Econometrics and Finance

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10.1257/MIC.20210361

Cite this

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AB - 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.

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DO - 10.1257/MIC.20210361

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JO - American Economic Journal: Microeconomics

JF - American Economic Journal: Microeconomics

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Decreasing Impatience

Abstract

Bibliographical note

ASJC Scopus subject areas

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