Exponential Discounting under Partial Efficiency

Fuente: arXiv
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Main Author: Gauthier, Charles
Format: Preprint
Published: 2025
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author Gauthier, Charles
author_facet Gauthier, Charles
contents This paper derives a novel representation of the exponential discounting model that allows one to assess departures from the model via a measure of efficiency. The approach uses a revealed preference methodology that does not make any parametric assumption on the utility function and allows for unrestricted heterogeneity. The method is illustrated using longitudinal data from checkout scanners and gives insights into sources of departure from exponential discounting.
format Preprint
id arxiv_https___arxiv_org_abs_2508_20249
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Exponential Discounting under Partial Efficiency
Gauthier, Charles
Theoretical Economics
This paper derives a novel representation of the exponential discounting model that allows one to assess departures from the model via a measure of efficiency. The approach uses a revealed preference methodology that does not make any parametric assumption on the utility function and allows for unrestricted heterogeneity. The method is illustrated using longitudinal data from checkout scanners and gives insights into sources of departure from exponential discounting.
title Exponential Discounting under Partial Efficiency
topic Theoretical Economics
url https://arxiv.org/abs/2508.20249