@article{a00cb98ceb344a35a44e42f3d8a76291,

title = "Comparative impatience under random discounting",

abstract = "The random discounting model has been used as a tractable model which is consistent with preference for flexibility. By taking Goldman (J. Econ. Theory 9:203–222, 1974) as an example, we illustrate that under random discounting, the average time preference and preference for flexibility may be conflicting to each other and their mixed effect contributes to revealed impatience. To obtain sharp results in comparative statics, we ask under what kind of probability shifts on discount factors, it is possible to say that one agent always exhibits a more impatient choice than the other even when both agents have flexibility concern. We provide a behavioral definition of impatience comparisons and identify that the relative degree of impatience is measured as a probability shift of a random discount factor in the monotone likelihood ratioorder.",

keywords = "Comparative impatience, Monotone likelihood ratio order, Preference for flexibility, Random discounting, Time preference",

author = "Youichiro Higashi and Kazuya Hyogo and Norio Takeoka and Hiroyuki Tanaka",

note = "Funding Information: We would like to thank Itzhak Gilboa, Atsushi Kajii, Hiroyuki Ozaki, Larry Samuelson, the audiences at the Mathematical Economics Workshop 2011 (Doshisha University) and SWET 2012 (Kushiro Public University of Economics), and the seminar participants at Hitotsubashi University, Keio University, Kyoto University, Okayama University, Otaru University of Commerce, and Ryukoku University for their helpful comments. We express sincere gratitude to two anonymous referees whose suggestions on earlier drafts considerably improved the paper. Hyogo acknowledges financial support by Ryukoku University. Higashi gratefully acknowledges financial support by Joint Research Program of KIER. Publisher Copyright: {\textcopyright} 2016, Springer-Verlag Berlin Heidelberg.",

year = "2017",

month = mar,

day = "1",

doi = "10.1007/s00199-015-0950-3",

language = "English",

volume = "63",

pages = "621--651",

journal = "Economic Theory",

issn = "0938-2259",

publisher = "Springer New York",

number = "3",

}