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Non-hyperbolic discounting and dynamic preference reversal

Shou Chen, Richard Fu, Lei Wedge and Ziran Zou ()
Additional contact information
Shou Chen: Business School of Hunan University
Richard Fu: University of Alabama at Birmingham
Lei Wedge: University of South Florida
Ziran Zou: Business School of Hunan University

Theory and Decision, 2019, vol. 86, issue 2, 283-302

Abstract: Abstract In this paper, we present a time-varying and non-stationary but non-hyperbolic discount function that explains dynamic preference reversal. The new discount function emerges from an analysis of intertemporal consumption and savings choices with mortality risk and an altruistic factor. Our analysis shows that the process of updating survival information may also account for dynamic preference reversal.

Keywords: Dynamic preference reversal; Non-hyperbolic discounting; Time varying; Updating information (search for similar items in EconPapers)
Date: 2019
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