Hyperbolic Discounting on the Behavior of Economic Agents with Different Cognitive Functions

Hyperbolic Discounting on the Behavior of Economic Agents with Different Cognitive Functions

Introduction the Discounted-Utility (DU) framework is widely used to model intertemporal choice, in economics and other fields (including behavioral ecology in biology). The DU model assumes that decision makers make current choices which maximize the discounted sum of instantaneous utilities in fut...

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Bibliographic Details
Main Authors: Mazhara G., Kapustyan V.
Format: Article
Language:English
Published: Mykolayiv National Agrarian University 2019-11-01
Series:Modern Economics
Subjects:
behavioral economics
game theory
cognitive functions
dynamic tasks of several periods
Online Access:https://modecon.mnau.edu.ua/issue/17-2019/mazhara.pdf
Description
Summary:Introduction the Discounted-Utility (DU) framework is widely used to model intertemporal choice, in economics and other fields (including behavioral ecology in biology). The DU model assumes that decision makers make current choices which maximize the discounted sum of instantaneous utilities in future periods. The most common assumption is that decision makers discount the future utility at time t by an exponentially declining discount factor, d(t)=δt.
ISSN:2521-6392

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