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Delay aversion

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  • ,

    (London Business School)

  • , A.

    (New York University)

Abstract

We address the following question: When can one person properly be said to be more delay averse than another? In reply, several (nested) comparison methods are developed. These methods yield a theory of delay aversion which parallels that of risk aversion. The applied strength of this theory is demonstrated in a variety of dynamic economic settings, including the classical optimal growth and tree cutting problems, repeated games, and bargaining. Both time-consistent and time-inconsistent scenarios are considered.

Suggested Citation

  • , & , A., 2007. "Delay aversion," Theoretical Economics, Econometric Society, vol. 2(1), pages 71-113, March.
    • Handle: RePEc:the:publsh:225
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    References listed on IDEAS

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    Cited by:

    1. Jinrui Pan & Craig Webb & Horst Zank, 2013. "Discounting the Subjective Present and Future," Economics Discussion Paper Series 1305, Economics, The University of Manchester.
    2. Bastianello, Lorenzo, 2017. "A topological approach to delay aversion," Journal of Mathematical Economics, Elsevier, vol. 73(C), pages 1-12.
    3. Bastianello, Lorenzo & Chateauneuf, Alain, 2016. "About delay aversion," Journal of Mathematical Economics, Elsevier, vol. 63(C), pages 62-77.
    4. Banerjee, Kuntal & Dubey, Ram, 2011. "Impatience for Weakly Paretian Orders: Existence and Genericity," Working Papers 2011-03, Department of Economics, Colgate University.
    5. repec:ipg:wpaper:30 is not listed on IDEAS
    6. Banerjee, Kuntal & Dubey, Ram Sewak, 2013. "Impatience implication of weakly Paretian orders: Existence and genericity," Journal of Mathematical Economics, Elsevier, vol. 49(2), pages 134-140.
    7. repec:ipg:wpaper:2013-030 is not listed on IDEAS
    8. Mutlu, Gulseren, 2013. "Delay aversion under a general class of preferences," Economics Letters, Elsevier, vol. 121(2), pages 306-310.
    9. Manzini, Paola & Mariotti, Marco, 2007. "Choice Over Time," IZA Discussion Papers 2993, Institute of Labor Economics (IZA).
    10. Pan, Jinrui & Webb, Craig S. & Zank, Horst, 2015. "An extension of quasi-hyperbolic discounting to continuous time," Games and Economic Behavior, Elsevier, vol. 89(C), pages 43-55.

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    More about this item

    Keywords

    Delay aversion; impatience; consumption smoothing; time consistency;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

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