This research paper will survey models and experiments for decisions involving outcomes of different amounts at different points of time. Experiments have shown that people like to get rewards earlier than later in time. This is what the concept of Intertemporal choice implies. Thus, this paper will consider theoretical concepts including discounted utility, hyperbolic and quasy-hyperbolic models as well as empirical results indicating how people really make such decisions.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Discounted Utility Model
- Eliciting methods and DU Anomalies
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This research paper explores models and experiments for decisions involving outcomes at different points in time. The paper examines the concept of intertemporal choice, which suggests that people prefer receiving rewards sooner rather than later. It focuses on theoretical concepts including discounted utility, hyperbolic and quasi-hyperbolic models, and analyzes empirical results that demonstrate how people make intertemporal decisions in real-world scenarios.
- Intertemporal Choice
- Discounted Utility Model
- Hyperbolic and Quasi-Hyperbolic Models
- Empirical Results of Intertemporal Decision Making
- Discounting Rate and its Anomalies
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter introduces the concept of intertemporal choice and its importance in economic and decision theories. It highlights the need for accurate models to capture how humans discount the value of rewards over time.
- Discounted Utility Model: This chapter delves into the discounted utility (DU) model, which has been widely used to analyze intertemporal choices. It explains the model's assumptions and how it relates to financial valuation. The chapter also discusses the limitations of the DU model and its inability to fully reflect real-world decision-making behavior.
Schlüsselwörter (Keywords)
This research paper explores the key concepts of intertemporal choice, discounted utility, hyperbolic discounting, quasi-hyperbolic discounting, and the anomalies associated with these models. The paper also delves into empirical results and experimental methods used to study how people make decisions involving time-based tradeoffs.
- Quote paper
- PhD candidate Ilir Hajdini (Author), 2012, Intertemporal Choices in Management Decision Making, Munich, GRIN Verlag, https://www.grin.com/document/202566
