A note on the relevance of the q-exponential function in the context of intertemporal choices

This paper shows that the q-exponential function well known in the deformed algebra inspired in the Tsallis's nonextensive thermodynamics may be used to model discount functions in intertemporal choices which present the phenomenon known as increasing patience. Moreover, we show that this insight may also be used to provide a measure of the degree of dynamic inconsistency presented in such decisions.

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Year of publication:	2006
Authors:	Cajueiro, Daniel O.
Published in:	Physica A: Statistical Mechanics and its Applications. - Elsevier, ISSN 0378-4371. - Vol. 364.2006, C, p. 385-388
Publisher:	Elsevier
Subject:	Behavioral economics \| Increasing patience \| q-exponential \| Tsallis's thermodynamics

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

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