Loading Events


It will be worth it, in the end

25 Apr 2017 - 12:00 pm - 1:00 pm

Most descriptive intertemporal choice models proceed by altering the exponential discount function, to a hyperbolic function or other forms. We proceed differently, by assuming that intertemporal choice errors are driven by exponential discounting until a given future date, S, the, “Subjective time horizon.” Utilities beyond S are incorrectly given zero weight (when S < T, the agent’s “Objective time horizon”). We explore this model’s correspondence with the empirical literature on intertemporal choice errors. Crucially, all errors are moderated by S, with errors disappearing as S approaches T. First we demonstrate that only a finite number of intertemporal choice errors are possible in this model. Two errors involve only a single intertemporal prospect (which is either incorrectly favoured or avoided compared versus inaction). Six further errors involve choosing a smaller sooner over a larger later reward. A simple consumption model demonstrates that setting S < T never benefits the agent. We further show that temporal inconsistency can be explained via a diminishing cost of increasing S at further delays. The cost of increasing S further explains within-agent variation in intertemporal choice, via size, loss, and length effects. Debiasing is moderated via S, providing a mechanistic explanation for previous experimental findings.


25 Apr 2017
12:00 pm - 1:00 pm
Event Category:
Event Tags:


Golfclub Olching e.V.,
Feursstraße 89
Olching, 82140 Germany


Name (Seminar)
Philip Newall
Link Name (Seminar)


Do you have further questions on our services or need additional Information about school? Take a look at our Frequently Asked Questions. If you still can’t find what you are looking for, you can also send us your inquiry by means of our contact form. We will get back to you as soon as possible.

Postal Address
Technical University of Munich
TUM School of Management
Arcisstraße 21
80333 Munich

Visiting Address
TUM Main Campus
Building 0505
Campus Roomfinder