A Brief Summary: Theoretical Part of the 'Non-Parametric Test of Time Consistency: Present Bias and Future Bias'

4 Pages Posted: 9 Jun 2010 Last revised: 1 Jul 2010

Date Written: June 8, 2010

Abstract

This short note summarizes the theory part of "Non-parametric test of time consistency: Present bias and Future bias" [Takeuchi, forthcoming, Games and Economic Behavior]. It proves that (1) the sub(super)modular equivalent delay function corresponds to present (future) bias, and it also presents (2) the elicitation of future bias and increasing impatience, and (3) the estimation of time discount function which is independent of the utility function. Figure illustrates the inverse S-shape time discount function accommodates present and future biases at the same time.

Keywords: Non-parametric test of time consistency, future bias, equivalent delay

JEL Classification: C91, D81, D99

Suggested Citation

Takeuchi, Kan, A Brief Summary: Theoretical Part of the 'Non-Parametric Test of Time Consistency: Present Bias and Future Bias' (June 8, 2010). Available at SSRN: https://ssrn.com/abstract=1622272 or http://dx.doi.org/10.2139/ssrn.1622272

Kan Takeuchi (Contact Author)

Hitotsubashi University ( email )

2-1 Naka Kunitachi-shi
Tokyo 186-8601
Japan

HOME PAGE: http://www.econ.hit-u.ac.jp/~kan/

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