A BEJTE Advances article.

Abstract

We propose a novel approach to modelling time preferences, based on a cognitive shortcoming of human decision makers: the perception of future events becomes increasingly `blurred' as the events are pushed further in time. Our model explains behavioural `anomalies' such as preference reversal and cyclical choice.

Submitted: October 12, 2005 · Accepted: June 19, 2006 · Published: October 16, 2006

Originally published in Advances in Theoretical Economics.

Recommended Citation

Manzini, Paola and Mariotti, Marco (2006) "A Vague Theory of Choice over Time," Advances in Theoretical Economics: Vol. 6 : Iss. 1, Article 6.
Available at: http://www.bepress.com/bejte/advances/vol6/iss1/art6