Decreasing impatience and the magnitude effect jointly contradict exponential discounting

2009 ◽  
Vol 144 (2) ◽  
pp. 869-875 ◽  
Author(s):  
Jawwad Noor
Mathematics ◽  
2020 ◽  
Vol 8 (3) ◽  
pp. 367 ◽  
Author(s):  
Salvador Cruz Rambaud ◽  
Piedad Ortiz Fernández

The framework of this paper is intertemporal choice and, more specifically, the so-called delay effect. Traditionally, this anomaly, also known as decreasing impatience, has been revealed when individuals reverse their preferences over monetary or non-monetary rewards. In this manuscript, we will analyze the delay effect by using preference relations and discount functions. The treatment of the delay effect with discount functions exhibits several scenarios for this paradox. Thus, the objective of this paper is to deduce the different expressions of the delay effect and their mathematical characterizations by using discount functions in stationary and dynamic settings. In this context, subadditivity will be derived as a particular case of decreasing impatience. Finally, we will introduce a new discount function, the so-called asymmetric exponential discount function, able to describe decreasing impatience.


2020 ◽  
Author(s):  
Sarah Lynne Salvador Daway-Ducanes

Abstract This paper analyses the macroeconomic and welfare effects of a higher retirement age within a dynamic overlapping generations framework, wherein exponential discounting and sophisticated quasi-hyperbolic discounting agents coexist in ‘mixed economies’. The transitional dynamics of economic aggregates depend on the proportion of QHD agents, and the extent to which reducing the social security tax rate mitigates crowding-out effects on savings and enables both lower pension contributions and higher pension benefits. Welfare impacts across agent types and cohorts differ accordingly: QHD agents employ the higher retirement age as a commitment mechanism to mitigate the adverse welfare implications of present-biasedness.


Author(s):  
Kerem Tomak

In this chapter we attempt to build a bridge between mobile commerce and the emerging field of behavioral economics. We first provide examples from mobile commerce and link them to behavioral economics. We then build a stylized model to assess the impact of hyperbolic discounting on the profit-maximizing behavior of a monopolist firm. We find that the monopolist makes lower profits compared to exponential discounting consumers for low levels of (positive) network externalities. As the network externalities increase, first-period prices increase, second period prices decrease and the profits increase in equilibrium.


2021 ◽  
pp. 171-177
Author(s):  
Tomas Björk ◽  
Mariana Khapko ◽  
Agatha Murgoci

2021 ◽  
pp. 71-85
Author(s):  
Tomas Björk ◽  
Mariana Khapko ◽  
Agatha Murgoci

2019 ◽  
Vol 19 (2) ◽  
Author(s):  
Shou Chen ◽  
Shengpeng Xiang ◽  
Hongbo He

Abstract We study the intertemporal consumption and portfolio rules in the model with the general hyperbolic absolute risk aversion (HARA) utility. The equivalent approximation approach is employed to obtain the Hamilton-Jacobi-Bellman (HJB) equations, and a remarkable property is shown: portfolio rules are independent of the discount function. Moreover, both the consumption and portfolio rates are non-increasing functions of wealth. Particularly illustrative cases examined in detail are the models with the most adopted discount functions, including exponential discounting and hyperbolic discounting. Explicit solutions for intertemporal decisions are found for these special cases, revealing that individual’s time preferences affect the consumption rules only. Moreover, the time-consistent consumption rate under hyperbolic discounting is larger than its counterpart under exponential discounting.


Sports ◽  
2019 ◽  
Vol 7 (11) ◽  
pp. 228
Author(s):  
Chen ◽  
Lu ◽  
Clemente ◽  
Bezerra ◽  
Kuo

Foot reflexology massage (FRM) has positive effects on cardiovascular and haemodynamic functions. However, information regarding the physiological changes after FRM post exercise-stress is limited. This study investigated the acute effects of FRM on heart rate variability (HRV) after the repeated sprint ability (RSA) test and the Yo-Yo Intermittent Recovery Test Level 1 (YY). Twenty-six collegiate male football players were randomly assigned to the FRM group (n = 14) or to the control group (n = 12). Electrocardiographic (ECG) signals were recorded for 15 min in supine position before and after the intervention/control period in the RSA test and the YY test. In comparison to the control group, the FRM group demonstrated higher values of root mean squared successive difference in the RR interval (RMSSD; p = 0.046, ES = 0.76) and in the proportion of differences of adjacent RR intervals >50 ms (pNN50; p = 0.031, ES = 0.87); and higher percent changes in mean RR interval (%MeanRR; p = 0.040, ES = 0.99), standard deviation of RR intervals (%SDNN; p = 0.008, ES = 1.10), normalised high-frequency power (%nHFP; p = 0.008, ES = 0.77), total power (%TP; p = 0.009, ES = 0.84) and standard deviation 1 and 2 (%SD1; p = 0.008, ES = 1.08, %SD2; p = 0.020, ES = 1.04) after the RSA test. The magnitude effect of post-exercise HRV was small after the FRM RSA protocol (ES = 0.32–0.57). Conversely, the results demonstrated a moderate and large magnitude effect of HRV in the RSA and YY protocols of the control group (ES: RSA = 1.07–2.00; YY = 0.81–1.61) and in the YY protocol of the FRM group (ES = 0.99–1.59). The FRM intervention resulted in beneficial effects on the cardiac parasympathetic reactivity and the sympatho-vagal balance after RSA performance.


2020 ◽  
Vol 181 ◽  
pp. 104258
Author(s):  
Carlos F. Aparicio ◽  
Malana Malonson ◽  
Jason Hensley

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