Is it "Economics and Psychology"?: the Case of Hyperbolic Discounting

Ariel Rubinstein ()

Working Papers from Tel Aviv

Abstract: The paper questions the methodology of "economics and psychology". It focuses on the case of hyperbolic discounting. Using some experimental results, I argue that the same sort of evidence which rejects the standard constant discount utility functions can just as easily reject hyperbolic discounting as well. Futhermore, a decision-making procedure based on similarity relation better explains the observations and is more intuitive. The paper concludes that combining "economics and psychology" requires opening the black box of decision-makers rather than modifying funcional forms.

Keywords: PSYCHOLOGY; ECONOMICS; EXPERIMENTATION; DECISION MAKING (search for similar items in EconPapers)
JEL-codes: C90 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2000
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Related works:
Working Paper: Is it 'Economics and Psychology'?: The Case of Hyperbolic Discounting (2010)
Working Paper: Is It 'Economics and Psychology?': The Case of Hyperbolic Discounting (2000)
Working Paper: Is it "Economics and Psychology"?: the Case of Hyperbolic Discounting (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:teavfo:00-21

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