Economics at your fingertips  

Temporal dominance and relative patience in intertemporal choice

Pavlo Blavatskyy ()
Additional contact information
Pavlo Blavatskyy: Montpellier Business School

Economic Theory, 2018, vol. 65, issue 2, 361-384

Abstract: Abstract A stream of intertemporal payoffs X first-order (second-order) temporarily dominates another stream Y if (the area below) the cumulative payoff function of X up till any moment of time is always at least as high as that of Y; or, equivalently, any rank-dependent discounted utility maximizer with a strictly increasing (concave) utility function and a strictly decreasing (convex) discount function prefers X over Y. An individual A is relatively more patient than an individual B if, whenever B is willing to undertake some investment project, A is moreover so; or, equivalently, for any stream of payoffs, A’s present-day equivalent is at least as high as that of B; or, equivalently, A’s discount factor is at least as high as that of B and B’s utility function is “more concave” than that of A. Related concepts of absolute patience and comparative probabilistic patience are briefly discussed.

Keywords: Intertemporal choice; Time preference; Discounted utility; Temporal dominance; Relative patience; Dynamic inconsistency; Hyperbolic discounting (search for similar items in EconPapers)
JEL-codes: D90 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:

Ordering information: This journal article can be ordered from
http://www.springer. ... eory/journal/199/PS2

Access Statistics for this article

Economic Theory is currently edited by Nichoals Yanneils

More articles in Economic Theory from Springer, Society for the Advancement of Economic Theory (SAET) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

Page updated 2019-04-09
Handle: RePEc:spr:joecth:v:65:y:2018:i:2:d:10.1007_s00199-016-1020-1