The process of intertemporal choice is intimately linked with the concept of discounting function. Usually the benchmark in this important financial tool is the instant 0. This is an actual constraint for economic agent decision making; indeed, in many situations, individuals have to decide at instants different from 0. Obviously, this introduces a multicriteria decision making framework in which a group of agents can (or cannot) cooperate in order to obtain greater profitabilities in function of the time variable. In this financial context, it is necessary to choose between transitive and non-transitive choice, giving rise to additive and non-additive (which includes subadditive and superadditive) discounting, respectively. Finally, another classification distinguishes between discounting with increasing or decreasing impatience.
Modelling the intertemporal choice through the Dynamic Time-Perception
VENTRE V;
2013
Abstract
The process of intertemporal choice is intimately linked with the concept of discounting function. Usually the benchmark in this important financial tool is the instant 0. This is an actual constraint for economic agent decision making; indeed, in many situations, individuals have to decide at instants different from 0. Obviously, this introduces a multicriteria decision making framework in which a group of agents can (or cannot) cooperate in order to obtain greater profitabilities in function of the time variable. In this financial context, it is necessary to choose between transitive and non-transitive choice, giving rise to additive and non-additive (which includes subadditive and superadditive) discounting, respectively. Finally, another classification distinguishes between discounting with increasing or decreasing impatience.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
