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About Delay Aversion

Author

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  • Lorenzo Bastianello
  • Alain Chateauneuf
Abstract
In this paper, we study the behaviour of decision makers who show preferences for advancing the timing of future satisfaction. We give two definitions that are representative of this kind of attitude and investigate their implications in (an intertemporal version of) three popular models used in decision theory: the Expected Utility, the Choquet Expected Utility and the MaxMin Expected Utility models. The first definition reveals interesting links with the theory studying the impossibility of aggregating infinite streams of income, while keeping both strong monotonicity and equality among all generations. Our second definition turns out to be a behavioural characterization of what Irving Fisher called impatience. Finally, we make a connection with the notion of domination of one stream of income over another, for all interest rates.
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Suggested Citation

  • Lorenzo Bastianello & Alain Chateauneuf, 2013. "About Delay Aversion," Working Papers 2013-30, Department of Research, Ipag Business School.
    • Handle: RePEc:ipg:wpaper:2013-30
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    References listed on IDEAS

    as
    1. Brown, Donald J & Lewis, Lucinda M, 1981. "Myopic Economic Agents," Econometrica, Econometric Society, vol. 49(2), pages 359-368, March.
    2. Kaushik Basu & Tapan Mitra, 2003. "Aggregating Infinite Utility Streams with InterGenerational Equity: The Impossibility of Being Paretian," Econometrica, Econometric Society, vol. 71(5), pages 1557-1563, September.
    3. repec:hal:pseose:hal-00964446 is not listed on IDEAS
    4. Jean-Marc Tallon & Alain Chateauneuf, 2002. "Diversification, convex preferences and non-empty core in the Choquet expected utility model," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 19(3), pages 509-523.
    5. Jean-Marc Tallon & Alain Chateauneuf, 2002. "Diversification, convex preferences and non-empty core in the Choquet expected utility model," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 19(3), pages 509-523.
    6. Chateauneuf, Alain & Ventura, Caroline, 2013. "G-continuity, impatience and myopia for Choquet multi-period utilities," Journal of Mathematical Economics, Elsevier, vol. 49(1), pages 97-105.
    7. , & , A., 2007. "Delay aversion," Theoretical Economics, Econometric Society, vol. 2(1), pages 71-113, March.
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    Cited by:

    1. Faruk Gul & Paulo Natenzon & Wolfgang Pesendorfer, 2021. "Random Evolving Lotteries and Intrinsic Preference for Information," Econometrica, Econometric Society, vol. 89(5), pages 2225-2259, September.
    2. Bastianello, Lorenzo, 2017. "A topological approach to delay aversion," Journal of Mathematical Economics, Elsevier, vol. 73(C), pages 1-12.
    3. Christopher P. Chambers & Federico Echenique, 2020. "The Pareto Comparisons of a Group of Exponential Discounters," Mathematics of Operations Research, INFORMS, vol. 45(2), pages 622-640, May.
    4. Jean-Pierre Drugeon & Thai Ha Huy, 2022. "A not so myopic axiomatization of discounting," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 73(1), pages 349-376, February.
    5. Faruk Gul & Paulo Natenzon & Wolfgang Pesendorfer, 2020. "Random Evolving Lotteries and Intrinsic Preference for Information," Working Papers 2020-71, Princeton University. Economics Department..
    6. Lorenzo Bastianello & José Heleno Faro, 2023. "Choquet expected discounted utility," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 75(4), pages 1071-1098, May.
    7. Jean-Pierre Drugeon & Thai Ha-Huy, 2018. "Towards a Decomposition for the Future: Closeness, Remoteness & Temporal Biases," Working Papers halshs-01962035, HAL.

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