A measure of inconsistencies in intertemporal choice

PLoS One. 2019 Oct 30;14(10):e0224242. doi: 10.1371/journal.pone.0224242. eCollection 2019.

Abstract

The aim of this paper is to derive an index able to indicate if a discount function exhibits increasing or decreasing impatience, and, even, in the last case, whether the decreasing impatience is moderate or strong. Moreover, it will be shown that the sign of this indicator coincides with the sign of the convexity index of the discount function when only considering the cases of increasing and decreasing impatience. Consequently, this parameter supposes an improvement of Prelec's index of convexity. The main advantage of this novel measure is that, the same as Prelec's index, it uses the differential calculus and, moreover, can be easily plotted by showing the changes from a type of impatience to another one according to time.

Publication types

  • Research Support, Non-U.S. Gov't

MeSH terms

  • Choice Behavior*
  • Models, Economic*
  • Time Factors

Grants and funding

This paper has been partially supported by the project “La sostenibilidad del sistema nacional de salud: reformas, estrategias y propuestas,’’ reference: DER2016-76053-R to SCR, Ministerio de Economía y Competitividad. The funders had no role in study design, data collection and analysis, decision to publish, or preparation of the manuscript. There was no additional external funding received for this study.