A not so myopic axiomatization of discounting

Jean-Pierre Drugeon and Thai Ha-Huy
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Jean-Pierre Drugeon: Paris School of Economics and Centre National de la Recherche Scientifique

Economic Theory, 2022, vol. 73, issue 1, No 11, 349-376

Abstract: Abstract This article builds an axiomatization of inter-temporal trade-offs that takes an explicit account of the distant future. The focus is on separable representations and the approach is completed following a decision-theory index based approach that is applied to utility streams understood as the well-being of future generations. The introduction of some new axioms is herein shown to lead to the emergence of two distinct orders that respectively relate to the distant future and close future components of some utility stream. This enlightens the limits of the commonly used fat tail intensity requisites for the evaluation of utility streams. These are replaced by an axiomatic approach to myopia degrees.

Keywords: Axiomatization; Myopia; Temporal Order Decompositions; Distant future sensitivities (search for similar items in EconPapers)
JEL-codes: D11 D90 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (8)

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Working Paper: A not so myopic axiomatization of discounting (2022)
Working Paper: A not so myopic axiomatization of discounting (2022)
Working Paper: A not so myopic axiomatization of discounting (2018)
Working Paper: A Not so Myopic Axiomatization of Discounting (2018)
Working Paper: A Not so Myopic Axiomatization of Discounting (2018)
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DOI: 10.1007/s00199-020-01336-3

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