A not so myopic axiomatization of discounting

Abstract

for their insightful comments on these occasions.

Additive valuations of streams of payoffs that satisfy the time value of money principle: A characterization and robust optimization

“…The essential difference between the characterization of valuations in the present paper and earlier studies (e.g., Koopmans (1960), Koopmans, Diamond, and Williamson (1964), Diamond (1965), Fishburn (1966), Koopmans (1972), Lauwers (1995), Chichilnisky (1996Chichilnisky ( , 1997, Chambers and Echenique (2018), Drugeon and Huy (2021)) is the adoption of the time value of money principle. The time value of money principle reflects the preference for expediting the receipt of positive payoffs: the faster the accumulation of payoffs, the better.…”

“…Many writers, e.g., Debreu (1959, 1960), Koopmans (1960), Koopmans, Diamond, and Williamson (1964), Diamond (1965), Fishburn (1966), Koopmans (1972), Olson and Bailey (1981), Lauwers (1995), Chichilnisky (1996, 1997), Fishburn and Edwards (1997), Chambers and Echenique (2018), Drugeon and Huy (2021), have studied the implications of various axioms on preferences over product sets, e.g., on sequences of consumptions or on streams of payoffs, and the representation of the preferences by ordinal utilities.…”

Time-consistent equilibria in dynamic models with recursive payoffs and behavioral discounting

“…2 1 For a recent selection of axiomatic work see e.g. Wakai (2008), Montiel Olea andStrzalecki (2014), Galperti and Strulovici (2017), Chambers and Echenique (2018), Drugeon and Ha-Huy (2018), among many others. This work includes also papers on temptation preferences of Gul and Pesendorfer (2001, 2004, as well as related work on self-control and time-inconsistent choice of Noor (2011), Dekel and Lipman (2012), Ahn et al (2019), and Ahn et al (2020), Noor and Takeoka (2020b,a) among others.…”

{On Multiple Time-Varying Discount Rates with Recursive Time-Dependent Orders

“…Bich et al (2021) also propose a multiple quasi-hyperbolic discounts and a MaxMin representation of the index function, with a similar set of possible discount rates (δ 0 , δ) ∈[δ 0 , δ 0 ] × [δ, δ].Relying on a different approach and an alternative axiomatical system,Drugeon and Ha-Huy (2021a) present an α−Maxmin representation with discount rates satisfying a temporal stability property from a certain date in the future.The core difference from the current work is that, whereas inBich et al (2021) andDrugeon and Ha-Huy (2021a), the optimal discount rates are chosen at the beginning of the evaluation, in this article and as a result of the recursive representation, they are chosen in each period, by comparing the utility values of the present with those of the future. Moreover, in this article, a present bias property is present, with the lower and upper bounds of possible sets increasing (or at least, not decreasing) over time.4.…”