Past and Future: Backward and Forward Discounting

• 成果类型: Article; Early Access
• 署名作者: Ray, Debraj; Vellodi, Nikhil; Wang, Ruqu
• 署名单位: New York University; University of Warwick; Paris School of Economics; Zhejiang University; Queens University - Canada
• 刊物名称: JOURNAL OF THE EUROPEAN ECONOMIC ASSOCIATION
• ISSN/ISSBN: 1542-4766
• DOI: 10.1093/jeea/jvad036
• 发表日期: 2023
• 关键词: cultural transmission; time; preferences; duration; CHOICE; SEQUENCES; anomalies

摘要

We study a model of time preference in which both current consumption and the memory of past consumption enter experienced utility-or the felicity-of an individual. An individual derives overall utility from her own felicity and the anticipated felicities of future selves. These postulates permit an agent to anticipate future regret in current decisions, and generate a set of novel testable implications in line with empirical evidence. The model can be applied to disparate phenomena, including present bias, equilibrium savings behavior, anticipation of regret, and career concerns.