Two comparative models of intertemporal choice have recently been proposed as an alternative to the standard hyperbolic discounting model. One, the interval discounting model, retains the notion that intertemporal choice is governed by discounting, but proposes that discounting involves direct comparisons between the options along the time attribute. The other, the tradeoff model, discards the ...

This paper assesses theoretically and examines empirically the effects of time preferences on two types of career investments: work effort and on-the-job search activities. Whereas the former increases the probability of getting promoted, the latter affect the chance of receiving an outside job offer. The aim of this study is to test the exponential versus the hyperbolic discounting model withi...

In past studies observing probability discounting, the subjective value of a probabilistic reward has been measured by finding the indifferent point between a larger, probabilistic reward and a smaller, certain reward. The present study observed probability discounting when a common multiplier (between 0.05 and 1.0) is added to both rewards, making both options probabilistic. In two experiments...

The present study examined delay discounting of hypothetical monetary rewards over a wide range of amounts (from $20 to $10 million) in order to determine how reward amount affects the parameters of the hyperboloid discounting function and to compare fits of the hyperboloid model with fits of two discounting models used in neuroeconomics: the quasi-hyperbolic and the double-exponential. Of the ...

Psychological and microeconomic studies have shown that outcome values are discounted by imposed delays. The effect, called temporal discounting, is demonstrated typically by choice preferences for sooner smaller rewards over later larger rewards. However, it is unclear whether temporal discounting occurs during the decision process when differently delayed reward outcomes are compared or durin...

Humans are known to discount future rewards hyperbolically in time. Nevertheless, a formal recursive model of hyperbolic discounting has been elusive until recently, with the introduction of the hyperbolically discounted temporal difference (HDTD) model. Prior to that, models of learning (especially reinforcement learning) have relied on exponential discounting, which generally provides poorer ...

The present paper studies an optimal withdrawal and investment problem for a retiree who is interested in sustaining her retirement consumption above a prespecified minimum consumption level. Apparently, the withdrawal and investment policy depends substantially on the retiree’s health condition and her time preferences (subjective discount factor). We assume that the health of the retiree can ...

This study examines the relationship between time discounting, other sources of time preference, and choices about smoking. Using a survey fielded for our analysis, we elicit rates of time discount from choices in financial and health domains. We also examine the relationship between other determinants of time preference and smoking status. We find very high rates of time discount in the financ...

Exact optimal paths are calculated for two closed economies, each with an accumulable capital, a non-renewable resource and exogenous technical progress. The first economy has hyperbolic discounting and (possibly) hyperbolic technical progress. On its optimal path, generally, welfare-equivalent income > wealth-equivalent income > Sefton-Weale income > NNP; and sustainable income = NNP only if c...