Temptation-biased preferences for risk and time

Mark Schneider

Economics Letters, 2020, vol. 193, issue C

Abstract: We introduce a model of temptation-biased preferences that generalizes quasi-hyperbolic discounting and quasi-rank-dependent probability weighting. The model explains empirically observed interactions between risk and time preferences and empirically observed correlations between expected utility violations and discounted utility violations.

Keywords: Risk preference; Time preference; Discounted expected utility; Present bias; Temptation (search for similar items in EconPapers)
JEL-codes: D81 D90 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176520301944
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:193:y:2020:i:c:s0165176520301944

DOI: 10.1016/j.econlet.2020.109293

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().