Hyperbolic discount curves: a reply to Ainslie

Ainslie (Theory and Decision, 73, 3–34, <CitationRef CitationID="CR4">2012</CitationRef>) challenges our interpretation of the properties of hyperbolic discount curves in an iterated prisoners’ dilemma (IPD) model. In this reply, we discuss the emergence of hyperbolic discount functions in the behavioral economics literature and evaluate their properties. Furthermore, we present a summarized version of our IPD model and evaluate Ainslie’s points of contention. Copyright Springer Science+Business Media New York 2014