A Study of Emotional Hyperbolic Discount Utility on Intertemporal Decision Making

• Main Authors: Yu-sheng Chen, 陳昱晟
• Other Authors: Huang, Yeu-Shiang
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/65700213565258719815

碩士 === 國立成功大學 === 工業與資訊管理學系碩博士班 === 96 === Discount utility is used to explain human decision behaviors for different points in time under the consideration of time preference. Current studies have been extended from two basic models, which are the exponential and the hyperbolic discount utility models. The more popular hyperbolic discount model is well recognized for resolving the effects of preference reversal and is less steeply discounting than that for the exponential discount model. However, to enhance the capability of explaining the intertemporal decision making behaviors, an emotional hyperbolic discount utility model which is constructed by the combination of emotional factors and discount utility was proposed. The proposed model revised the conventional hyperbolic discount utility model by introducing a emotional factor of which the different feelings between the actual and the anticipative results are considered. The proposed model is able to account for the effect of decision makers’ emotional flutuation for prospects with different combinations of payoff, probability,and time, and, in addition, is capable of infering the relationships between the emotional factor and the discount utility to explain the situation that the result will happen or not in the future. Therefore, the proposed model can interpretate intertemporal decision making behaviors more rationally.