Time Preference and Time Consistency:

HANS-PETER WEIKARD

Published: 27.11.2001  〉 Heft 8 (von 8) 2001  〉 Resort: Articles 
Submitted: N. A.   〉 Feedback to authors after first review: N. A.   〉 Accepted: N. A.

ABSTRACT

On the Rationality of Sequential ChoiceThe paper discusses the problem of discounting, time preference, and time consistent decision making. While a constant pure rate of time preference leads to consistent consumption plans, other discounting schemes - like hyperbolic discounting - do not. Using a so-called money pump argument, time inconsistencies can be shown to be irrational. The paper also explores the use of a hedonic utility concept to explain sequential choice behaviour.
CONTACT AUTHOR
Dr. rer. pol. habil. HANS-PETER WEIKARD, Department of Social Sciences, Wageningen University, Hollandseweg 1, NL-6706 KN Wageningen, Niederlande (E-Mail: hans-peter.weikard @alg.shhk. wag-ur.nl)
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