posted on 2010-01-28, 16:16authored byAli al-Nowaihi, Sanjit Dhami
In a major contributions to behavioral economics, Loewenstein and Prelec (1992)
set the foundations for the behavioral approach to decision making over time and derive
the generalized hyperbolic discounting formula. Here we show that their assumption
‘common difference effect with quadratic delay’ cannot be weakened to ‘common
difference effect’