A New Approach to Intertemporal Choice: The Delay Function
The framework of this paper is intertemporal choice, which traditionally has been studied with preference relations and discount functions. However, the interest of econophysics in this topic makes time become a central magnitude. Therefore, the aim of this paper is to introduce the concept of delay...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2020-05-01
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| Series: | Symmetry |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2073-8994/12/5/807 |
| _version_ | 1797568130990473216 |
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| author | Salvador Cruz Rambaud Isabel González Fernández |
| author_facet | Salvador Cruz Rambaud Isabel González Fernández |
| author_sort | Salvador Cruz Rambaud |
| collection | DOAJ |
| description | The framework of this paper is intertemporal choice, which traditionally has been studied with preference relations and discount functions. However, the interest of econophysics in this topic makes time become a central magnitude. Therefore, the aim of this paper is to introduce the concept of delay function and, by using this tool, to analyze the concept of impatience and the different types of inconsistency. In behavioral finance, consistency is correlated with the concept of symmetry because, in this case, the indifference between two rewards does not change when the same delay is added to their respective availability dates. Moreover, we have shown the way to derive a discount (respectively, delay) function starting from the expression of its corresponding delay (respectively, discount) function by requiring some suitable conditions for this construction. Finally, we have deduced the concept of instantaneous variation rate and Prelec’s measure of inconsistency in terms of the delay function. |
| first_indexed | 2024-03-10T19:53:04Z |
| format | Article |
| id | doaj.art-eaaf9cdcd3c2490293b7a55cb24d47f7 |
| institution | Directory Open Access Journal |
| issn | 2073-8994 |
| language | English |
| last_indexed | 2024-03-10T19:53:04Z |
| publishDate | 2020-05-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Symmetry |
| spelling | doaj.art-eaaf9cdcd3c2490293b7a55cb24d47f72023-11-20T00:17:07ZengMDPI AGSymmetry2073-89942020-05-0112580710.3390/sym12050807A New Approach to Intertemporal Choice: The Delay FunctionSalvador Cruz Rambaud0Isabel González Fernández1Departamento de Economía y Empresa, Universidad de Almería, La Cañada de San Urbano, s/n, 04120 Almería, SpainDepartamento de Economía y Empresa, Universidad de Almería, La Cañada de San Urbano, s/n, 04120 Almería, SpainThe framework of this paper is intertemporal choice, which traditionally has been studied with preference relations and discount functions. However, the interest of econophysics in this topic makes time become a central magnitude. Therefore, the aim of this paper is to introduce the concept of delay function and, by using this tool, to analyze the concept of impatience and the different types of inconsistency. In behavioral finance, consistency is correlated with the concept of symmetry because, in this case, the indifference between two rewards does not change when the same delay is added to their respective availability dates. Moreover, we have shown the way to derive a discount (respectively, delay) function starting from the expression of its corresponding delay (respectively, discount) function by requiring some suitable conditions for this construction. Finally, we have deduced the concept of instantaneous variation rate and Prelec’s measure of inconsistency in terms of the delay function.https://www.mdpi.com/2073-8994/12/5/807econophysicsintertemporal choicedelay functioninconsistencyincreasing impatiencemoderately decreasing impatience |
| spellingShingle | Salvador Cruz Rambaud Isabel González Fernández A New Approach to Intertemporal Choice: The Delay Function Symmetry econophysics intertemporal choice delay function inconsistency increasing impatience moderately decreasing impatience |
| title | A New Approach to Intertemporal Choice: The Delay Function |
| title_full | A New Approach to Intertemporal Choice: The Delay Function |
| title_fullStr | A New Approach to Intertemporal Choice: The Delay Function |
| title_full_unstemmed | A New Approach to Intertemporal Choice: The Delay Function |
| title_short | A New Approach to Intertemporal Choice: The Delay Function |
| title_sort | new approach to intertemporal choice the delay function |
| topic | econophysics intertemporal choice delay function inconsistency increasing impatience moderately decreasing impatience |
| url | https://www.mdpi.com/2073-8994/12/5/807 |
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