The additive property of the inconsistency degree in intertemporal decision making through the generalization of psychophysical laws

Natália Destefano and Alexandre Souto Martinez

Physica A: Statistical Mechanics and its Applications, 2011, vol. 390, issue 10, 1763-1772

Abstract: Intertemporal decision making involves choices among options whose effects occur at different moments. These choices are influenced not only by the effect of reward value perception at different moments, but also by the time perception effect. One of the main difficulties that affect standard experiments involving intertemporal choices is the simultaneity of both effects on time discounting. In this paper, we unify the psychophysical laws and discount value functions using the one-parameter exponential and logarithmic functions from nonextensive statistical mechanics. Also, we propose to measure the degree of inconsistency. This quantity allow us to discriminate both effects of time and value perception on discounting process and, by integration, obtain other main quantities like impulsivity and discount functions.

Keywords: Complex systems; Decision making; Rationality; Discount function; Impulsivity; Neuroeconomics; Econophysics (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:390:y:2011:i:10:p:1763-1772

DOI: 10.1016/j.physa.2011.01.016

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