Zeitpräferenz und Zeitkonsistenz: Zur Rationalität sequenzieller Entscheidungen

The paper discusses the problem of discounting, time preference, and time consistent decision making. While a constant pure rate of time preference leads to consistent consumption plans, other discounting schemes – like hyperbolic discounting – do not. Using a so-called money pump argument, time inconsistencies can be shown to be irrational. The paper also explores the use of a hedonic utility concept to explain sequential choice behaviour.