New paradoxes in intertemporal choice
Similar to research on risky choice, the traditional analysis of intertemporal choice takes the view that an individual behaves so as to maximize the discounted sum of all future utilities. The well-known Allais paradox contradicts the fundamental postulates of maximizing the expected value or utili...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Cambridge University Press
2011-02-01
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| Series: | Judgment and Decision Making |
| Subjects: | |
| Online Access: | https://www.cambridge.org/core/product/identifier/S193029750000406X/type/journal_article |
| _version_ | 1827831059037814784 |
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| author | Li-Lin Rao Shu Li |
| author_facet | Li-Lin Rao Shu Li |
| author_sort | Li-Lin Rao |
| collection | DOAJ |
| description | Similar to research on risky choice, the traditional analysis of intertemporal choice takes the view that an individual behaves so as to maximize the discounted sum of all future utilities. The well-known Allais paradox contradicts the fundamental postulates of maximizing the expected value or utility of a risky option. We describe a violation of the law of diminishing marginal utility as well as an intertemporal version of the Allais paradox. |
| first_indexed | 2024-03-12T04:39:02Z |
| format | Article |
| id | doaj.art-5a9fa7d9222c451cb9f4322c4ad9c511 |
| institution | Directory Open Access Journal |
| issn | 1930-2975 |
| language | English |
| last_indexed | 2024-03-12T04:39:02Z |
| publishDate | 2011-02-01 |
| publisher | Cambridge University Press |
| record_format | Article |
| series | Judgment and Decision Making |
| spelling | doaj.art-5a9fa7d9222c451cb9f4322c4ad9c5112023-09-03T09:46:15ZengCambridge University PressJudgment and Decision Making1930-29752011-02-01612212910.1017/S193029750000406XNew paradoxes in intertemporal choiceLi-Lin Rao0Shu LiInstitute of Psychology, Chinese Academy of Sciences, China, and Graduate University of Chinese Academy of Sciences, ChinaSimilar to research on risky choice, the traditional analysis of intertemporal choice takes the view that an individual behaves so as to maximize the discounted sum of all future utilities. The well-known Allais paradox contradicts the fundamental postulates of maximizing the expected value or utility of a risky option. We describe a violation of the law of diminishing marginal utility as well as an intertemporal version of the Allais paradox.https://www.cambridge.org/core/product/identifier/S193029750000406X/type/journal_articleintertemporal choicerisky choicecancellation |
| spellingShingle | Li-Lin Rao Shu Li New paradoxes in intertemporal choice Judgment and Decision Making intertemporal choice risky choice cancellation |
| title | New paradoxes in intertemporal choice |
| title_full | New paradoxes in intertemporal choice |
| title_fullStr | New paradoxes in intertemporal choice |
| title_full_unstemmed | New paradoxes in intertemporal choice |
| title_short | New paradoxes in intertemporal choice |
| title_sort | new paradoxes in intertemporal choice |
| topic | intertemporal choice risky choice cancellation |
| url | https://www.cambridge.org/core/product/identifier/S193029750000406X/type/journal_article |
| work_keys_str_mv | AT lilinrao newparadoxesinintertemporalchoice AT shuli newparadoxesinintertemporalchoice |