Random Intertemporal Choice
نویسندگان
چکیده
We provide a theory of random intertemporal choice. Choice is random due to unobserved heterogeneity in discounting from the perspective of a modeler. First, we show that the modeler can identify the distribution of discount rates uniquely from random choice. We then provide axiomatic characterizations of random discounting utility models, including exponential and quasi-hyperbolic discounting as special cases. Finally, we test our axioms using recent experimental data. We find that random exponential discounting is not rejected and the distribution of discount rates is statistically indistinguishable across decision times.
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