Temporal Discounting for Multidimensional Economic Agents

Abstract

Individuals frequently place a higher value on money and goods today than they would in the future. This is known as temporal or time discounting, and most economic models include discount functions to represent such utility over time. In this paper we evaluated traditional models with experimental data from the scientific literature and constructed our own samples for comparison.
 In addition, we evaluated the prediction accuracy of the models and proposed new hybrid solutions. Our investigation aims to contribute to a better understanding of human nature in complex processes.

The dynamic of decision-making: Effect of intertemporal choice on clothing products

“…Those describe the phenomenon of intertemporal choice, a process by which individuals make decisions on several alternatives at various times (Camerer et al, 2005). This concept represents an individual's present and future consumption model, which aims to achieve maximum satisfaction throughout his/her life that might be affected by several aspects such as the size, time, risk, and composition of the choices or alternatives (Bota, 2021). The alternatives for intertemporal choice are divided into two types: an alternative that provides instant small rewards or the smaller-but-sooner (SS) option and an option that provides delayed large rewards or a larger-but-later (LL) Individuals' emotional states (i.e., happy and sad emotions) might influence the intertemporal choice process, a decision of choosing between instant alternatives with small advantages or delayed alternatives with enormous benefits, when purchasing a product.…”