Published September 15, 2006
by Oxford University Press, USA .
Written in English
|The Physical Object|
|Number of Pages||320|
Modulation of Impulsivity and Reward Sensitivity in Intertemporal Choice by Striatal and Midbrain Dopamine Synthesis in Healthy Adults. Journal of Neurophysiology, (3), – Smith, P. K., Bogin, B. and Bishai, D. (). Intertemporal Choice. Daniel Read. Search for more papers by this author. Daniel Read. Search for more papers by this author. Book Editor(s): Derek J. Koehler. Search for more papers by this author. Nigel Harvey. Search for more papers by this author. First published: 01 January Chapter Intertemporal Choice Introduction We are now in a position to apply our methodology in a variety of contexts, including two particularly important ones – intertemporal choice and risky choice. As we will see, we can use the apparatus we have constructed to analyse these interesting problems. We start with intertemporal choice. Yelberton’s Choice: The Intertemporal Budget Set. Yelberton will make a choice between present and future consumption. With an annual rate of return of 6%, he decides that his utility will be highest at point B, which represents a choice of $, in present consumption and $1,, in future consumption.
A final development in the economic literature on intertemporal choice is the question, raised by Daniel Read and collaborators [Read, ; Read and Roelofsma, ], of whether many of the results that have been attributed to hyperbolic time discounting can in fact be explained by what he calls “subadditive discounting,” i.e., the tendency for people to show lower discount rates not for more delayed intervals . Intertemporal choice may be viewed as an area where decision making improves with age. Older adults make quantitatively better decisions with respect to maximizing absolute units of reward; they more often choose larger, later rewards over sooner, smaller rewards compared to younger adults. Intertemporal choice is an economic term describing how an individual's current decisions affect what options become available in the future. Theoretically, by . Most choices require decision-makers to trade-oﬀ costs and beneﬁts at diﬀerent points in time. Decisions with consequences in multiple time periods are referred to as intertemporal choices. Decisions about savings, work eﬀort, education, nutrition, exercise, and health care are all intertemporal choices.
The fall and rise of psychological explanations in the economics of intertemporal choice. In G. F. Loewenstein and J. Elster (eds.), Choice Over Time, pp. 3– New York: Russell Sage Foundation. Time and Decision takes up these questions with a comprehensive collection of new research on intertemporal choice, examining how people face the problem of deciding over time. Economists approach intertemporal choice by means of a model in which people discount the value of future events at a constant s: 1. The permanent income hypothesis implies that, for any cohort of people born at the same time, inequality in both consumption and income should grow with age. We investigate this prediction using cohort data constructed from 11 years of household survey data from the United States, 22 years from Great Britain, and 14 years from Taiwan. The data show that within-cohort consumption and income. For much of the twentieth century, the working model of intertemporal choice was the (exponential) discounted utility model developed by Ramsey () and Samuelson (), which features time-separable utility flows that are exponentially discounted: i.e., utility flows are discounted with the function 𝛿ç, where 𝛿 is the discount factor and tis the horizon of the utility flow.