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A Note On The Loewenstein-Prelec Theory Of Intertemporal Choice

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posted on 11.05.2009, 15:43 by Ali al-Nowaihi, Sanjit Dhami
In one of the major contributions to behavioral economics, Loewenstein and Prelec (1992) set the foundations for the behavioral approach to decision making over time. We correct a number of errors in Loewenstein and Prelec (1992). Furthermore, we provide a correct, more direct and simpler derivation of their generalized hyperbolic discounting formula that has formed the basis of much recent work on temporal choice.

History

Publisher

Dept. of Economics, University of Leicester

Available date

11/05/2009

Publisher version

http://www.le.ac.uk/economics/research/discussion/papers2005.html

Book series

Discussion Papers in Economics;05/18

Language

en