
	Where results make sense

Topic: Hyperbolic discounting

Related Topics

Pseudocertainty effect

Henry Temple

Crescent, Oklahoma

Mantophasmatodea

Klodzko

Another World (TV series)

Harmonium

Carter Dickson

CUNY

Military of Wake Island

List of colonial governors in 1896

Cardinal spline

Tajik language

Homeland security

250 metre class warship

In the News (Sat 14 Nov 09)

Northern Trust

Marvin Harrison

Peter Chernin

Gary Locke

Match Play

Penelope Cruz

Mickey Rourke

AR Rahman

Danny Boyle

Hugh Jackman

	Hyperbolic discounting - Wikipedia, the free encyclopedia
		In behavioral economics, hyperbolic discounting refers to the empirical finding that people generally prefer smaller payoffs to larger payoffs when the smaller payoffs come sooner in time than the larger; when all the payoffs are either distant or proximal in time, people tend to prefer the larger.
		The phenomenon of hyperbolic discounting was first discovered and the term first used by Richard Herrnstein in experiments involving pigeons and food (Chung and Herrnstein, 1967) and later reproduced with human subjects.
		Where v is the discounted value of the reward, V is the undiscounted value of the reward, D is the delay in the reward, and k is the degree of discounting.
	en.wikipedia.org /wiki/Hyperbolic_discounting (738 words)

	precise
		With hyperbolic discounting, goods that would be valued the same as with exponential discounting at very short and very long delays would be valued less at middling delays (figure #1).
		Summed hyperbolic curves from whatever goods accrued from the whole practice of exponential discounting might motivate rates of 3%, or any other rate including 0%; but the lower the rate to be enforced, the less the amount of imminent consumption that could be resisted.
		The insight that hyperbolic discounting theory supplies is that beliefs may often do their pacing job without being accurate; the role of accuracy for noninstrumental beliefs is only to supply uniqueness.
	www.picoeconomics.com /precis.htm (14236 words)

	1943. The Implications of Hyperbolic Discounting for Project Evaluation (Site not responding. Last check: 2007-11-02)
		Hyperbolic discounting provides a rationale for lowering the required rate of return on investment projects but does not justify treating environmental projects differently from other investment projects.
		The problem with hyperbolic discounting is that it leads to time-inconsistent plans—a person who discounts the future hyperbolically will not carry out the consumption plans he makes today.
		Although hyperbolic discounting provides a rationale for lowering the required rate of return on investment projects, it does not provide justification for those who seek to treat environmental projects differently from other investment projects.
	www.worldbank.org /html/dec/Publications/Workpapers/WPS1900series/wps1943/wps1943-abstract.html (480 words)

	Stephanie D. Preston reviews The Breakdown of Will by George Ainslie
		Befitting the audacious title, Ainslie seems to simply use hyperbolic discounting and intertemporal bargaining as a starting point for a long series of armchair introspections on the nature of human behavior.
		Ainslie explains these shifts with “hyperbolic discounting” by transforming the traditional exponential relationship between time and value into a hyperbolic relationship such that value increases more steeply as the distance to the reward approaches.
		His main points are made without good examples, the depictions of the model are counterintuitive, and he does not explain well how hyperbolic discounting is related to intertemporal bargaining.
	human-nature.com /nibbs/02/ainslie.html (2237 words)

	RePEc
		Agents with hyperbolic discount functions exhibit a high degree of discounting in the short run, but a relatively low degree of discounting in the long run.
		Therefore, hyperbolic agents are likely to delay tasks with immediate costs and delayed benefits, whereas they would choose to perform the same task if both costs and benefits were to occur in the future.
		The parameters of the hyperbolic discount function are separately identified because different forms of discounting have contrasting effects on the different components of the job search process.
	www.inomics.com /cgi/repec?handle=RePEc:red:sed004:99 (354 words)

	CiteULike: Loss of self-control in intertemporal choice may be attributable to logarithmic time-perception (Site not responding. Last check: 2007-11-02)
		In exponential discounting, a temporal discounting rate is constant over time, which has been referred to as dynamic consistency.
		Rather, dynamically inconsistent manners of discounting delayed rewards, e.g., hyperbolic discounting, have been repeatedly observed in humans and non-human animals.
		In spite of recent advances in neuroimaging and neuropsychopharmacological study, the reason why humans and animals discount delayed rewards hyperbolically is unknown.
	www.citeulike.org /user/klouie/article/245985 (450 words)

	Damn Interesting » Hyperbolic Discounting
		In essence, hyperbolic discounting is the human tendency to prefer smaller payoffs now over larger payoffs later, which leads one to largely disregard the future when it requires sacrifices in the present.
		It turns out that hyperbolic discounting is the same logical flaw that causes people to over-commit their future schedules; Research has found that most people will make commitments long in advance that they would never make if the commitment required immediate action.
		In a society where credit is available to almost anyone, hyperbolic discounting has created an environment where it's rare for people to save up for expensive items, even when interest rates are so high that the amount paid is much greater.
	www.damninteresting.com /?p=507 (5846 words)

	Cambridge Center for Behavioral Studies: Behavioral Economics Conference 2004 Abstracts
		Hyperbolic discounting has been well demonstrated by four experimental routes; and there is moderate evidence that it motivates impulse control by an intertemporal bargaining technique, proposed as the mechanism of willpower.
		Positive emotion is then limited by premature satiation of the appetite for it, a relentless process motivated by the impatience that is described by hyperbolic discount curves.
		Discounting of delayed reinforcers refers to the observation that the value of a delayed reinforcer is discounted (reduced in value or considered to be worth less) compared to the value of an immediate reinforcer.
	www.behavior.org /econ/abstracts.cfm (1847 words)

	Evolution as Learning Yields Hyperbolic Discounting (Site not responding. Last check: 2007-11-02)
		It is shown that the apparent discount rate, the combination of the agents' true discount rate and the infection rate, decreases over time and approaches the agents' true discount rate.
		This decrease, known as hyperbolic discounting, is consistent with what is observed in psychology studies, while the limiting case, exponential discounting, is consistent with market level observations.
		This model closes the gap between individual and market level observations of discounting behavior without explicitly assuming the two kinds of discounting nor relying on commitment mechanisms.
	web.pdx.edu /~woodsj/WorkingPapers/viruspaper (157 words)

	EconPapers: Hyperbolic Discounting, Wealth Accumulation, and Consumption
		Abstract: Laboratory and field studies of time preference find that discount rates are much greater in the short-run than in the long-run.
		The behavior of the hyperbolic households is com-pared to the behavior of exponential households.
		The hyperbolic households exhibit greater consumption-income comovement and experience a greater drop in consumption around retirement.
	econpapers.repec.org /paper/edjceauch/90.htm (241 words)

	RePEc
		Abstract: A vast empirical evidence in experimental psychology on time discounting has documented various behavioral anomalies which cast doubts on the empirical support for exponential discounting, to date the most widely used assumption on time preference in economic theory.
		Such specifications of discounting would introduce a fundamental paradigm change in economic theory: preferences with hyperbolic (or quasi-hyperbolic) discounting in fact, as opposed to preferences with exponential discounting, lack time-consistency.
		Rarely have the data been analyzed with proper econometric instruments; in particular, the hypothesis of hyperbolic discounting has never been tested statistically against the alternative of exponential discounting.
	www.inomics.com /cgi/repec?handle=RePEc:red:sed004:563 (152 words)

	Can We Really Observe Hyperbolic Discounting? (ResearchIndex) (Site not responding. Last check: 2007-11-02)
		Recently, a growing literature has studied intertemporal choice when individuals discount the future hyperbolically.
		These preferences generate dynamically inconsistent choices, in contrast with the usual assumption of exponential discounting, where this issue cannot arise.
		Hyperbolic discounting is justified based on experimental evidence of individual self-control problems.
	citeseer.ist.psu.edu /522447.html (196 words)

	CiteULike: On Hyperbolic Discounting and Uncertain Hazard Rates (Site not responding. Last check: 2007-11-02)
		The value of a future reward should be discounted where there is a risk that the reward will not be realized.
		The observed hyperbolic time-preference function is consistent with an exponential prior distribution for the underlying hazard rate.
		Sensitivity of the predicted time-preference function to variation in the probability distribution of the underlying hazard rate is explored.
	www.citeulike.org /article/86958 (337 words)

	Is It "Economics and Psychology"?: The Case of Hyperbolic Discounting (ResearchIndex) (Site not responding. Last check: 2007-11-02)
		Is It "Economics and Psychology"?: The Case of Hyperbolic Discounting
		It focuses on the case of hyperbolic discounting.
		Using some experimental results, I argue that the same sort of evidence which rejects the standard constant discount utility functions can just as easily reject hyperbolic discounting as well.
	citeseer.ist.psu.edu /344035.html (407 words)

	Behavioral finance - Wikipedia, the free encyclopedia
		Expected utility and discounted utility models began to gain wide acceptance which generated testable hypotheses about decision making under uncertainty and intertemporal consumption respectively, and a number of observed and repeatable anomalies challenged these hypotheses.
		Furthermore, during the 1960s cognitive psychology began to describe the brain as an information processing device (in contrast to behaviorist models).
		The most prominent idea is that of hyperbolic discounting, in which a high rate of discount is used between the present and the near future, and a lower rate between the near future and the far future.
	en.wikipedia.org /wiki/Behavioral_Finance (1895 words)

	SSRN-Reconsidering the Experimental Evidence for Quasi-Hyperbolic Discounting by Gregory Besharov, Bentley Coffey
		We prove that, like exponential discounters, quasi-hyperbolic discounters are best off when they maximize wealth by choosing the greater financial reward in experiments.
		When experimental rewards are not financial, the choices of even exponential agents cannot be theoretically restricted because of complementarities, across goods and time, and because of learning that occurs between decisions.
		Since generalizing preferences from exponential to quasi-hyperbolic is neither necessary nor sufficient to generate the experimental results, there is a fundamental identification problem.
	papers.ssrn.com /sol3/papers.cfm?abstract_id=415120 (256 words)

	Abstract "Hyperbolic Discounting and Secondary Markets" (Site not responding. Last check: 2007-11-02)
		If consumers are hyperbolic discounters, however, secondary markets are no longer neutral as they allow consumers to postpone their purchasing decisions.
		In this case, the equilibrium price in the primary market is decreasing in the number of periods in which the good can be traded.
		If secondary markets never close, hyperbolic discounters may use collusive intrapersonal strategies, which lead to a Pareto improvement for all incarnations of the same consumer.
	www.ssc.upenn.edu /~nocke/hyperbolicsecondary-abstract.html (146 words)

	SSRN-References Cited 'Reconsidering the Experimental Evidence for Quasi-Hyperbolic Discounting' by Gregory Besharov, ... (Site not responding. Last check: 2007-11-02)
		SSRN-References Cited 'Reconsidering the Experimental Evidence for Quasi-Hyperbolic Discounting' by Gregory Besharov, Bentley Coffey
		"Discount Functions and the Measurement of Patients Values: Womens Decisions During Childbirth." Medical Decision Making 4(1), 47-58.
		Weitzman, Martin L. "Why the Far-Distant Future Should Be Discounted at Its Lowest Possible Rate." Journal of Environmental Economics and Management 36(3), 201-208.
	papers.ssrn.com /sol3/RefUsedIn.cfm?abid=415120 (474 words)

	Job Search and Hyperbolic Discounting: Structural Estimation and Policy Evaluation
		It estimates quantitatively the degree of hyperbolic discounting, and assesses its implications for the impact of various policy interventions aimed at reducing unemployment.
		"Job Search and Hyperbolic Discounting: Structural Estimation and Policy Evaluation," IZA Discussion Papers 997, Institute for the Study of Labor (IZA).
		"Golden Eggs and Hyperbolic Discounting," The Quarterly Journal of Economics, MIT Press, vol.
	ideas.repec.org /p/red/sed004/99.html (1265 words)

	EconPapers: Job Search and Hyperbolic Discounting: Structural Estimation and Policy Evaluation
		Job Search and Hyperbolic Discounting: Structural Estimation and Policy Evaluation
		Working Paper: Job Search and Hyperbolic Discounting: Structural Estimation and Policy Evaluation (2004)
		This item may be available elsewhere in EconPapers: Search for items with the same title.
	econpapers.repec.org /paper/redsed004/99.htm (507 words)

	Golden Eggs and Hyperbolic Discounting
		Hyperbolic discount functions induce dynamically inconsistent preferences, implying a motive for consumers to constrain their own future choices.
		This paper analyzes the decisions of a hyperbolic consumer who has access to an imperfect commitment technology: an illiquid asset whose sale must be initiated one period before the sale proceeds are received.
		The model predicts that consumption tracks income, and the model explains why consumers have asset-specific marginal propensities to consume.
	ideas.repec.org /a/tpr/qjecon/v112y1997i2p443-77.html (259 words)

	Procrastination Publications
		Economics studies it as a form of temporal discounting, examining its effects on behaviors such as retirement savings.
		Brocas, I., and Carrillo, J. Rush and procrastination under hyperbolic discounting and interdependent activities.
		Nadeau, M.-F., Senecal, C., and Guay, F. The determinants of academic procrastination: A mediational model of the family context and processes of the self.
	www.ucalgary.ca /~steel/procrastinus/pubs/publications.html (8644 words)

	Environmental Valuation & Cost-Benefit News - Post details: Hyperbolic Discounting of Public Goods
		Both the conditional fixed effect logit estimates of the random utility model and mixed logit estimates implied that the rate of time preference is very high for immediate improvements and drops off substantially thereafter, which is inconsistent with exponential discounting but consistent with hyperbolic discounting.
		Estimates of the quasi-hyperbolic discounting parameter range from 0.48 to 0.61.
		People who are older are especially likely to have a high disutility from delays in improving water quality.
	www.envirovaluation.org /index.php?p=2771&more=1&c=1&tb=1&pb=1 (770 words)

	Find in a Library: Job search and hyperbolic discounting : structural estimation and policy evaluation
		Find in a Library: Job search and hyperbolic discounting : structural estimation and policy evaluation
		Job search and hyperbolic discounting : structural estimation and policy evaluation
		WorldCat is provided by OCLC Online Computer Library Center, Inc. on behalf of its member libraries.
	worldcatlibraries.org /wcpa/ow/2adc4ad1099cc3c0a19afeb4da09e526.html (84 words)

	HLS The John M. Olin Center: Faculty Discussion Papers
		Louis Kaplow, Discounting Dollars, Discounting Lives: Intergenerational Distributive Justice and Efficiency, 06/2006; forthcoming in University of Chicago Law Review.
		Kip Viscusi and Joel Huber, Hyperbolic Discounting of Public Goods, 2/2006.
		Polinsky and S. Shavell, On the Disutility and Discounting of Imprisonment and the Theory of Deterrence, 9/97; subsequently published in Journal of Legal Studies, Vol.
	www.law.harvard.edu /programs/olin_center/papers (12310 words)

	» Professor Sir Partha Dasgupta
		"Uncertainty and Hyperbolic Discounting" (with E.S. Maskin), forthcoming, American Economic Review, September 2005.
		Reprinted in J. Scheraga, ed., Discounting and Environmental Policy (Aldershot, Hampshire: Ashgate), 2003.
		Reprinted in J. Scheraga, ed., Discounting and Environmental Policy (Aldershot: Ashgate), 2003.
	www.econ.cam.ac.uk /faculty/dasgupta/publications.html (1507 words)

	Econ 502 Syllabus: Masters Macro Theory (Tesfatsion)
		Shrink-wrapped copies of this packet are available from Copyworks (105 Welch Avenue, Ames, 292-3630) for a price of $12.88 (plus tax) each.
		A discount coupon for a three-ringed notebook should be included with each packet.
		Copyworks is open 24 hours each day of the week.
	www.econ.iastate.edu /classes/econ502/tesfatsion/syl502.htm (4407 words)

Try your search on: Qwika (all wikis)