Timescale standard to discriminate between hyperbolic and exponential discounting and construction of a nonadditive discounting model

Abstract Under the presupposition that human time perception is distorted in intertemporal choice, this study constructs a scale framework of axiomatic measurement. First, conditions (homogeneity degree one or two) to identify form are proposed so can determine whether hyperbolic exponential more suitable function for modeling people’s discounting. Homogeneity implies subjective delay measured by power and its discount becomes power-exponential type, whereas homogeneity two log type. Second, method shown constructing model reflect subadditive superadditive A non-commutative non-associative concatenation operation provided generate string consisting subdivided durations incorporates effect repeated with duration. The discounting yielded substituting these strings an equipped generalized scale, determination subadditivity superadditivity depends on value product is, respectively, smaller greater than usual extensive structure.