An α-MaxMin utility representation for close and distant future preferences with temporal biases

B-Tier
Journal: Journal of Mathematical Economics
Year: 2023
Volume: 109
Issue: C

Authors (2)

Drugeon, Jean-Pierre (not in RePEc) Ha-Huy, Thai (Université Paris-Saclay)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper provides a framework for understanding preferences over utility streams across different time periods. We analyze preferences for the close future, for the distant future, and a synthesis of both, establishing a representation involving weights over time periods. Examining scenarios where two utility streams cannot be robustly compared to each other, we introduce notions in which one has more “potential” to be preferred over another, which lead to MaxMin, MaxMax, and α-MaxMin representations. Finally, we consider temporal bias in the form of violations of stationarity. For close future preferences, we obtain a generalization of quasi-hyperbolic discounting. For distant future preferences, we obtain Banach limits and discuss the relationship with exponential discounting.

Technical Details

RePEc Handle
repec:eee:mateco:v:109:y:2023:i:c:s030440682300109x
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25