A comparison between Tsallis’s statistics-based and generalized quasi-hyperbolic discount models in humans

Taiki Takahashi

Physica A: Statistical Mechanics and its Applications, 2008, vol. 387, issue 2, 551-556

Abstract: Intertemporal choice has drawn attention in econophysics and neuroeconomics. Both impulsivity and inconsistency in intertemporal choice can be parametrized with a Tsallis’s statistics-based q-exponential discount model. Although a recent neuroeconomic study has proposed a dual-self discounting model (a generalized quasi-hyperbolic discounting), no study to date has examined the relationship between the q-exponential and quasi-hyperbolic models. We empirically estimated the inconsistency parameter 1−q in the q-exponential discount function and the parameter of an internal conflict between dual selves in intertemporal choice by humans. We observed that (i) the inconsistency parameter in the q-exponential model is positively related to a conflict between selves within a subject and (ii) q-exponential discounting better fits group data, while quasi-hyperbolic discounting better fits individual data. Our results indicate that (i) inconsistent intertemporal decision-makers may experience strong internal conflict during intertemporal choice behavior, and (ii) the q-exponential and the quasi-hyperbolic discount models should respectively be utilized for group and individual data. The usefulness of the q-exponential and the quasi-hyperbolic in studies of addiction and economic behavior is discussed.

Keywords: Econophysics; Intertemporal choice; Inconsistency; Neuroeconomics; Multiple selves (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:387:y:2008:i:2:p:551-556

DOI: 10.1016/j.physa.2007.09.007

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Physica A: Statistical Mechanics and its Applications is currently edited by K. A. Dawson, J. O. Indekeu, H.E. Stanley and C. Tsallis

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