The intertemporal choice behavior: the role of emotions in a multiagent decision problem

Abstract

Traditional Discounted Utility Model assumes an exponential delay discount function, with a constant discount rate: this implies dynamic consistency and stationary intertemporal preferences. Contrary to the normative setting, decision neuroscience stresses a lack of rationality, i.e., inconsistency, in some intertemporal choice behaviors. We deal with both models are dealt with in the framework of some relevant decision problems.

Keywords

• time preference, exponential discounting, hyperbolic discounting.