A Vague Theory of Choice over Time

Arbeitspapier

We propose a novel approach to modelling time preferences, based on a cognitive shortcoming of human decision makers: the perception of future events becomes increasingly ?blurred? as the events are pushed further in time. We axiomatise a class of preference representations which can be specialised to rationalise ?anomalies? such as preference reversals and cyclical preferences. We also present an application to a form of time inconsistency which we dub ?the now or never fallacy?.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 1228

Classification and Topics

• Classification: Wirtschaft ; Micro-Based Behavioral Economics: General‡ ; Game Theory and Bargaining Theory: General ; Relation of Economics to Other Disciplines
• Subject: time preferences ; hyperbolic discounting ; preference reversal ; cycles ; intransitive preferences ; Zeitpräferenz ; Verhaltensökonomik ; Präferenztheorie ; Zeitkonsistenz ; Theorie ; now or never fallacy

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Manzini, Paola ; Mariotti, Marco
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/20491
• Last update: 10.03.2025, 11:42 AM CET