Preferences over sequences of payments: A new validation of the q-exponential discounting

Preferences over sequences of payments: A new validation of the q-exponential discounting

Salvador Cruz Rambaud, Joaquín López Pascual, María de los Ángeles del Pino Álvarez. (2019). "Preferences over sequences of payments: A new validation of the q-exponential discounting" Volume 515. Physica A: Statistical Mechanics and its Applications-Journal-Elsevier. pp 332-345

 

The preference for incremental gains, or the improving sequence effect, has been presented as one of the most important anomalies in intertemporal choice. Usually, the experiments to verify this effect have been based on sequences of incomes, and most of them have shown a preference for an increasing sequence. The objective of this paper is to analyse this topic in the context of loan repayment plans where a preference for constant and decreasing over rising payments is expected. The methodology applied in this paper is based on the use of questionnaires in the same way as Hoelzl et al. (2011) to evaluate different loan plans with the same interest rates and durations. It clearly shows that people prefer those plans which repay more at the beginning of the loan duration. Thus, the main contribution of this paper is the use of the q-exponential discounting to explain this revealed decreasing sequence effect because the q-exponential discount function can exhibit the inconsistency in intertemporal choices based on a decreasing interest rate. Finally, recommendations are made for banking institutions when considering their strategies of interest rate offers in the context of bank marketing.

 

 

 


NEUROECONOMÍA

22/09/2018

"NEUROECONOMÍA  Neurociencia, psicología y economía:

tres disciplinas en colaboración"

JOAQUIN LOPEZ PASCUAL & ELENA ORTIZ TERÁN

Neurociencia & Psicología. EL PAÍS Colecciones

In this book the authors wanted to explain the changes that have taken place in the study of economics from its beginnings as a science, through the birth and development of behavioral economics (behavioral economics), in which psychology and economics are joined, until we arrive at what we know today as «neuroeconomics».

Recent scientific advances in the study of the brain, and its functioning, especially with neuroimaging, have allowed the emergence of Neuroeconomics that studies the brain responses that occur while making economic decisions allowing understanding the behavior of individuals.

We believe that the possibilities of neuroeconomics are immense, to propose models, to predict the economic behavior of people, design financial products and application, training and application to artificial intelligence in the financial world.

 

https://colecciones.elpais.com/literatura/62-neurociencia-psicologia.html

 


INTERNATIONAL ECONOMIC ENVIRONMENT

03/10/2018

The New New World

Private Businesses Built Modern China. Now the Government Is Pushing Back

 

HONG KONG — The comments were couched in careful language, but the warning about China’s direction was clear.

 

China grew to prosperity in part by embracing market forces, said Wu Jinglian, the 88-year-old dean of pro-market Chinese economists, at a forum last month. Then he turned to the top politician in the room, Liu He, China’s economic czar, and said “unharmonious voices” were now condemning private enterprise.

 

“The phenomenon,” Mr. Wu said, “is worth noting.”

 

 https://www.nytimes.com/2018/10/03/business/china-economy-private-enterprise.html


INTERNATIONAL ECONOMIC ENVIRONMENT

23/09/2018

U.S. Tariffs on Chinese Goods to Take Effect, and the Fed Will Meet

 

American and European trade negotiators will meet for more talks on trans-Atlantic trade, and new data on trade and manufacturing may show effects of a trade war.

 

https://www.nytimes.com/2018/09/23/business/us-tariffs-on-chinese-goods-to-take-effect-and-the-fed-will-meet.html

 


NEUROECONOMÍA

22/09/2018

 

NEUROCIENCIA & PSICOLOGÍA. EL PAÍS 

 

NEUROECONOMÍA. Neurociencia, Psicología y Economía.

Tres CIENCIAS dispuestas a colaborar   

Una colección creada por un equipo multidisciplinar con la voluntad de aunar el rigor científico y el espíritu divulgativo

 

https://colecciones.elpais.com/literatura/62-neurociencia-psicologia.html


   

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