Time-Consistent Optimal Stopping
4 Pages Posted: 8 May 1997
Date Written: March 17, 1997
This paper investigates time consistent preferences where the strategy space consists of a stopping time, and the decision-maker also acts under uncertainty. Despite the requirement of identical vNM preferences, it is shown that in addition to the exponential discounting class identified by Strotz (1956), negative ane discounting also yields time consistent behavior.
JEL Classification: C44
Suggested Citation: Suggested Citation