History-dependent random discounting

Youichiro Higashi; Kazuya Hyogo; Norio Takeoka

doi:10.1063/1.3241646

History-dependent random discounting

Youichiro Higashi, Kazuya Hyogo, Norio Takeoka

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

Abstract

In the literature of dynamic models under uncertainty, it is commonly assumed that uncertainty is resolved gradually over time and its resolution is independent of the actions taken by a decision maker up to that time period. However, contingencies in the decision maker's mind may change and even increase over time according to habits that have evolved by experiences, actions, or consumptions in the past. We provide an axiomatic model where the decision maker faces uncertainty about her own time preference or discount factors in future and these uncertainty may evolve according to histories or habits from the past consumption.

Original language	English
Title of host publication	Numerical Analysis and Applied Mathematics - International Conference on Numerical Analysis and Applied Mathematics 2009, ICNAAM-2009
Pages	965-968
Number of pages	4
DOIs	https://doi.org/10.1063/1.3241646
Publication status	Published - Nov 26 2009
Event	International Conference on Numerical Analysis and Applied Mathematics 2009, ICNAAM-2009 - Rethymno, Crete, Greece Duration: Sep 18 2009 → Sep 22 2009

Publication series

Name	AIP Conference Proceedings
Volume	1168
ISSN (Print)	0094-243X
ISSN (Electronic)	1551-7616

Other

Other	International Conference on Numerical Analysis and Applied Mathematics 2009, ICNAAM-2009
Country	Greece
City	Rethymno, Crete
Period	9/18/09 → 9/22/09

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Keywords

Endogenous time preference
Habits
Preference for flexibility
Random discounting
Subjective states

ASJC Scopus subject areas

Physics and Astronomy(all)

Cite this

Higashi, Y., Hyogo, K., & Takeoka, N. (2009). History-dependent random discounting. In Numerical Analysis and Applied Mathematics - International Conference on Numerical Analysis and Applied Mathematics 2009, ICNAAM-2009 (pp. 965-968). (AIP Conference Proceedings; Vol. 1168). https://doi.org/10.1063/1.3241646

History-dependent random discounting. / Higashi, Youichiro; Hyogo, Kazuya; Takeoka, Norio.

Numerical Analysis and Applied Mathematics - International Conference on Numerical Analysis and Applied Mathematics 2009, ICNAAM-2009. 2009. p. 965-968 (AIP Conference Proceedings; Vol. 1168).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

Higashi, Y, Hyogo, K & Takeoka, N 2009, History-dependent random discounting. in Numerical Analysis and Applied Mathematics - International Conference on Numerical Analysis and Applied Mathematics 2009, ICNAAM-2009. AIP Conference Proceedings, vol. 1168, pp. 965-968, International Conference on Numerical Analysis and Applied Mathematics 2009, ICNAAM-2009, Rethymno, Crete, Greece, 9/18/09. https://doi.org/10.1063/1.3241646

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10.1063/1.3241646