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...uasi-geometric discounting." Economics Bulletin, Vol. 4, No. 43 pp. 1-8 Submitted: July 2, 2007. Accepted: November 14, 2007. URL: http://economicsbulletin.vanderbilt.edu/2007/volume4/EB-07D90006A.pdf 1. Introduction Economic theories of intertemporal choice generally assume that individuals discount the future exponentially. However, experimental and field evidence suggests that many individuals have preferences that reverse as the date of decision making nears (Lowenstein and Thaler 1989; Ainslie 1992; Angeletos, Laibson, Repetto, Tobacman, and Weinberg 2001; DellaVigna and Malmendier 2003; Fang and Silverman 2004). This type of behavior has been modeled through quasi-geometric discount functions that generate time inconsistency. A solution to the decision problem is usually required to take the form of a subgame perfect equilibrium of a game where the players are the consumer and his future selves. The purpose of this note is twofold. First, it studies efficiency in the cake eating problem with quasi-geometric discounting without commitment. Second, it investigates the possibility of obtaining efficient outcomes by introducing a planner who is able to distribute the initial endowment through a series o...

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...is phenomenon has been confirmed by the studies of Myersonsand Green (1995) and Kirby (1997) 2 . The hyperbolic discounting function contradicts thesassumption of the time consistency of preferences (=-=Fang and Silverman, 2004-=-) and supportssthe decrease of impatience over time.sHyperbolic time preferences have enormous implications for labour market policies.sHyperbolic worker is particularly sensitive to the immediate cos...

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...wenstein and Thaler, 1989; Ainslie, 1992). Moreover, there exists field evidence of present-biased preferences and time inconsistent behavior (Angeletos et al., 2001; DellaVigna and Malmendier, 2003; =-=Fang and Silverman, 2007-=-). Some empirical studies present evidence of how consumption is often very sensitive to an income transfer in the very short-run (Stephens, 2002, 2003), and even indicate a declining caloric intake o...