A behavioral approach to inconsistencies in intertemporal choices with the Analytic Hierarchy Process methodology

Viviana Ventre (), Cruz Rambaud Salvador (), Roberta Martino () and Fabrizio Maturo ()
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Viviana Ventre: University of Campania Luigi Vanvitelli
Cruz Rambaud Salvador: University of Almería, La Cañada de San Urbano
Roberta Martino: University of Campania Luigi Vanvitelli
Fabrizio Maturo: Universitas Mercatorum

Annals of Finance, 2023, vol. 19, issue 2, No 4, 233-264

Abstract: Abstract The framework of this paper is behavioral finance and, more specifically, the analysis of the main anomalies (delay, magnitude and sign effects) present in the processes of intertemporal choice. To the extent of our knowledge, only the delay effect (also known as decreasing impatience) has been discriminated between moderately and strongly decreasing impatience. However, taking into account that anomalies must be explained from a psychological point of view, the main objective of this paper is to relate the aforementioned paradoxes with the four categories of temperaments (artisan, guardian, idealist and rational) by using the sixteen personality types derived from the Myers–Briggs Type Indicator and the Behavioral Investor Types. To do this, we will use the Analytic Hierarchy Process methodology in order to detect the different levels of impatience through the so-called hyperbolic factor. Indeed, the main contribution of this paper refers to an empirical application which complements the theoretical analysis.

Keywords: AHP; Delay effect; Discount Function; Hyperbolic Factor; Impatience; Magnitude effect; Preference; Sign effect (search for similar items in EconPapers)
JEL-codes: G41 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s10436-022-00419-6

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