Hyperbolic discount curves: a reply to Ainslie
Journal article, Peer reviewed
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Original versionMusau, A. (2013). Hyperbolic discount curves: a reply to Ainslie. Theory and Decision, 1-22. doi: 10.1007/s11238-013-9361-8 10.1007/s11238-013-9361-8
Ainslie (Theory and Decision, 73, 3-34, 2012) challenges our interpretation of the properties of hyperbolic discount curves in an iterated prisoners' dilemma (IPD) model. In this reply, we discuss the emergence of hyperbolic discount functions in the behavioral economics literature and evaluate their properties. Furthermore, we present a summarized version of our IPD model and evaluate Ainslie's points of contention.
Published version of an article in the journal: Theory and Decision. Also available from the publisher at: http://dx.doi.org/10.1007/s11238-013-9361-8