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On Multiple Discount Rates with Recursive Time-Dependent Orders

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  • Drugeon, Jean-Pierre
  • Ha-Huy, Thai

Abstract

This study adresses time-dependent orders that are shown to lead to recursive representations based upon a Max-Min dichotomy and introduce a structure that is naturally based upon time-varying multiple discounts. It is argued that this setup naturally provides an enriched understanding of the much discussed present biases. It is established how a multiple discounts version of \emph{present biais} becomes available and directly builds upon the features of the order defined from the head of the utilities sequence.

Suggested Citation

  • Drugeon, Jean-Pierre & Ha-Huy, Thai, 2021. "On Multiple Discount Rates with Recursive Time-Dependent Orders," MPRA Paper 111308, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:111308
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    File URL: https://mpra.ub.uni-muenchen.de/111308/1/MPRA_paper_111308.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Axiomatization; Time-Dependent Orders; Time-Varying Multiple Discounts; Multiple Present Biases.;
    All these keywords.

    JEL classification:

    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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