History-dependent random discounting

Youichirou Higashi, Kazuya Hyogo, Norio Takeoka

Research output: Chapter in Book/Report/Conference proceedingConference 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 languageEnglish
Title of host publicationAIP Conference Proceedings
Pages965-968
Number of pages4
Volume1168
DOIs
Publication statusPublished - 2009
EventInternational Conference on Numerical Analysis and Applied Mathematics 2009, ICNAAM-2009 - Rethymno, Crete, Greece
Duration: Sep 18 2009Sep 22 2009

Other

OtherInternational Conference on Numerical Analysis and Applied Mathematics 2009, ICNAAM-2009
CountryGreece
CityRethymno, Crete
Period9/18/099/22/09

Fingerprint

histories
habits
contingency
dynamic models

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 AIP Conference Proceedings (Vol. 1168, pp. 965-968) https://doi.org/10.1063/1.3241646

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

AIP Conference Proceedings. Vol. 1168 2009. p. 965-968.

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Higashi, Y, Hyogo, K & Takeoka, N 2009, History-dependent random discounting. in 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
Higashi Y, Hyogo K, Takeoka N. History-dependent random discounting. In AIP Conference Proceedings. Vol. 1168. 2009. p. 965-968 https://doi.org/10.1063/1.3241646
Higashi, Youichirou ; Hyogo, Kazuya ; Takeoka, Norio. / History-dependent random discounting. AIP Conference Proceedings. Vol. 1168 2009. pp. 965-968
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