Nominal Wage Contracts as a Commitment against Hyperbolic Discounting

Economic agents with hyperbolic discount functions display time inconsistent preferences. In this paper, I show that for such agents fixed nominal wage contracts may represent a welfare enhancing commitment mechanism.

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Year of publication:	2010-12
Authors:	ap Gwilym, Rhys
Institutions:	Bangor Business School, Bangor University
Subject:	Nominal rigidities \| Hyperbolic discounting

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	Number 10014 12 pages
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010906153