A Note On The Loewenstein-Prelec Theory Of Intertemporal Choice
reportposted 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.