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 | AIP Conference Proceedings |
| Pages | 965-968 |
| Number of pages | 4 |
| Volume | 1168 |
| DOIs | |
| Publication status | Published - 2009 |
| Event | International Conference on Numerical Analysis and Applied Mathematics 2009, ICNAAM-2009 - Rethymno, Crete, Greece Duration: Sep 18 2009 → Sep 22 2009 |
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
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 proceeding › Conference contribution
}
TY - GEN
T1 - History-dependent random discounting
AU - Higashi, Youichirou
AU - Hyogo, Kazuya
AU - Takeoka, Norio
PY - 2009
Y1 - 2009
N2 - 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.
AB - 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.
KW - Endogenous time preference
KW - Habits
KW - Preference for flexibility
KW - Random discounting
KW - Subjective states
UR - http://www.scopus.com/inward/record.url?scp=70450179450&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=70450179450&partnerID=8YFLogxK
U2 - 10.1063/1.3241646
DO - 10.1063/1.3241646
M3 - Conference contribution
SN - 9780735407091
VL - 1168
SP - 965
EP - 968
BT - AIP Conference Proceedings
ER -