Journal of Northeastern University Natural Science ›› 2015, Vol. 36 ›› Issue (5): 753-756.DOI: 10.12068/j.issn.1005-3026.2015.05.031

• Management Science • Previous Articles     Next Articles

Research on the Degree of Dynamic Inconsistency in Intertemporal Decision Making

LU Yang, ZHUANG Xin-tian   

  1. School of Business Administration, Northeastern University, Shenyang 110819, China.
  • Received:2014-03-28 Revised:2014-03-28 Online:2015-05-15 Published:2014-11-07
  • Contact: LU Yang
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Abstract: The parameters and AICc (Akaike information criterion with small sample correction) of intertemporal choice models (exponential, simple hyperbolic, quasi hyperbolic and q-exponential) for undergraduate students and MBA students were estimated respectively. Meanwhile, two methods indicating the degree of inconsistency were compared. The results showed that the q-exponential discount model always generates the minimum AICc value regardless of working experience, and it is thus regarded as the optimal discount model; the method based on the logarithmic time-perception theory captures the essence of dynamic inconsistency, and it thus serves as the optimal approach to measure the degree of dynamic inconsistency.

Key words: dynamic inconsistency, intertemporal decision making, econophysics, logarithmic time-perception theory

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