The evolution of time preference with aggregate uncertainty

Abstract

We examine the evolutionary foundations of intertemporal preferences. When all the risk affecting survival and reproduction is idiosyncratic, evolution selects for agents who maximize the discounted sum of expected utility, discounting at the sum of the population growth rate and the mortality rate. Aggregate uncertainty concerning survival rates leads to discount rates that exceed the sum of population growth rate and death rate, and can push agents away from exponential discounting.

Links

PhilArchive



    Upload a copy of this work     Papers currently archived: 90,221

External links

Setup an account with your affiliations in order to access resources via your University's proxy server

Through your library

  • Only published works are available at libraries.

Analytics

Added to PP
2009-01-28

Downloads
19 (#679,564)

6 months
1 (#1,027,696)

Historical graph of downloads
How can I increase my downloads?

References found in this work

No references found.

Add more references