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Article

A New Approach to Intertemporal Choice: The Delay Function

Departamento de Economía y Empresa, Universidad de Almería, La Cañada de San Urbano, s/n, 04120 Almería, Spain
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Symmetry 2020, 12(5), 807; https://doi.org/10.3390/sym12050807
Received: 14 April 2020 / Revised: 8 May 2020 / Accepted: 10 May 2020 / Published: 13 May 2020
(This article belongs to the Special Issue 30 Years of Econophysics: Symmetry in Physics and Economics)
The framework of this paper is intertemporal choice, which traditionally has been studied with preference relations and discount functions. However, the interest of econophysics in this topic makes time become a central magnitude. Therefore, the aim of this paper is to introduce the concept of delay function and, by using this tool, to analyze the concept of impatience and the different types of inconsistency. In behavioral finance, consistency is correlated with the concept of symmetry because, in this case, the indifference between two rewards does not change when the same delay is added to their respective availability dates. Moreover, we have shown the way to derive a discount (respectively, delay) function starting from the expression of its corresponding delay (respectively, discount) function by requiring some suitable conditions for this construction. Finally, we have deduced the concept of instantaneous variation rate and Prelec’s measure of inconsistency in terms of the delay function. View Full-Text
Keywords: econophysics; intertemporal choice; delay function; inconsistency; increasing impatience; moderately decreasing impatience; strongly decreasing impatience econophysics; intertemporal choice; delay function; inconsistency; increasing impatience; moderately decreasing impatience; strongly decreasing impatience
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MDPI and ACS Style

Cruz Rambaud, S.; González Fernández, I. A New Approach to Intertemporal Choice: The Delay Function. Symmetry 2020, 12, 807. https://doi.org/10.3390/sym12050807

AMA Style

Cruz Rambaud S, González Fernández I. A New Approach to Intertemporal Choice: The Delay Function. Symmetry. 2020; 12(5):807. https://doi.org/10.3390/sym12050807

Chicago/Turabian Style

Cruz Rambaud, Salvador, and Isabel González Fernández. 2020. "A New Approach to Intertemporal Choice: The Delay Function" Symmetry 12, no. 5: 807. https://doi.org/10.3390/sym12050807

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