An α -MaxMin utility representation for close and distant future preferences with temporal biases

Jean-Pierre Drugeon () and Thai Ha-Huy
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Jean-Pierre Drugeon: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement

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Abstract: This paper provides a framework for understanding preferences over utility streams across different time periods. We analyze preferences for the close future, for the distant future, and a synthesis of both, establishing a representation involving weights over time periods. Examining scenarios where two utility streams cannot be robustly compared to each other, we introduce notions in which one has more "potential" to be preferred over another, which lead to MaxMin, MaxMax, and -MaxMin representations. Finally, we consider temporal bias in the form of violations of stationarity. For close future preferences, we obtain a generalization of quasi-hyperbolic discounting. For distant future preferences, we obtain Banach limits and discuss the relationship with exponential discounting.

Keywords: Axiomatization; Myopia; Multiple discounts; Alpha-MaxMin criteria; Temporal biases; Banach limits (search for similar items in EconPapers)
Date: 2023-12
New Economics Papers: this item is included in nep-mic and nep-upt
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-04331306v1
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Published in Journal of Mathematical Economics, 2023, 109, ⟨10.1016/j.jmateco.2023.102916⟩

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Related works:
Journal Article: An α-MaxMin utility representation for close and distant future preferences with temporal biases (2023)
Working Paper: An α -MaxMin utility representation for close and distant future preferences with temporal biases (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-04331306

DOI: 10.1016/j.jmateco.2023.102916

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