Related papers: Rational hyperbolic discounting
The sum of independent, but not necessary identically distributed, exponential random variables follows hypoexponential distribution. We focus on a particular case when all, but one rate parameters of the exponential variables are…
This paper tackles the issue of establishing a lower-bound on the asymptotic ratio of survival probabilities between two different initial conditions, asymptotically in time for a given Markov process with extinction. Such a comparison is a…
Suppose you have one unit of stock, currently worth 1, which you must sell before time $T$. The Optional Sampling Theorem tells us that whatever stopping time we choose to sell, the expected discounted value we get when we sell will be 1.…
A sender persuades a strategically naive decisionmaker (DM) by committing privately to an experiment. Sender's choice of experiment is unknown to the DM, who must form her posterior beliefs nonparametrically by applying some learning rule…
This paper extends the core results of discrete time infinite horizon dynamic programming to the case of state-dependent discounting. We obtain a condition on the discount factor process under which all of the standard optimality results…
The condition for adiabatic approximation are of basic importance for the applications of the adiabatic theorem. The traditional quantitative condition was found to be necessary but not sufficient, but we do not know its physical meaning…
We study the problem of selling a good to a group of bidders with interdependent values in a prior-free setting. Each bidder has a signal that can take one of $k$ different values, and her value for the good is a weakly increasing function…
Multi-item mechanisms can be very complex offering many different bundles to the buyer that could even be randomized. Such complexity is thought to be necessary as the revenue gaps between randomized and deterministic mechanisms, or…
This work suggests modifications to a previously introduced class of heterogeneous agent models that allow for the inclusion of different types of agent motivations and behaviours in a unified way. The agents operate within a highly…
Intentions are crucial for our practical reasoning. The rational intention obeys some simple logical principles, such as agglomeration and consistency, among others, motivating the search for a proper logic of intention. However, such a…
Imagine you and a friend purchase identical items at a store, yet only your friend received a discount. Would your friend's discount make you feel unfairly treated by the store? And would you be less willing to purchase from that store…
A seller sells an object over time but is uncertain how the buyer learns their willingness-to-pay. We consider informational robustness under \textit{limited commitment}, where the seller offers a price \textit{each period} to maximize…
We revisit the problem of fairly allocating a sequence of time slots when agents may have different levels of patience (Mackenzie and Komornik 2023). For each number of agents, we provide a lower threshold and an upper threshold on the…
We consider groups defined by cyclic presentations where the defining word has length three and the cyclic presentation satisfies the T(6) small cancellation condition. We classify when these groups are hyperbolic. When combined with known…
We study a \emph{financial} version of the classic online problem of scheduling weighted packets with deadlines. The main novelty is that, while previous works assume packets have \emph{fixed} weights throughout their lifetime, this work…
A buyer and a seller bargain over the price of an object. Both players can build reputations for being obstinate by offering the same price over time. Before players bargain, the seller decides whether to adopt a new technology that can…
We show that quasiparticle excitations with irrational charge and irrational exchange statistics exist in tight-biding systems described, in the continuum approximation, by the Dirac equation in (2+1)-dimensional space and time. These…
Using theory and experiments, this paper shows that the difficulty of making tradeoffs offers a parsimonious explanation for a wide range of behavioral phenomena. We develop a model of imprecise comparisons applicable to multiattribute,…
We are concerned with the problem of introducing credibility type information into reasoning systems. The concept of credibility allows us to discount information provided by agents. An important characteristic of this kind of procedure is…
The necessary and sufficient conditions for a hyperbolic semi-discrete equation to have five dimensional characteristic {\it x}-ring are derived. For any given chain, the derived conditions are easily verifiable by straightforward…