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Time Inconsistency / The Beta-Delta Model / Hyperbolic Discounting 3 года назад


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Time Inconsistency / The Beta-Delta Model / Hyperbolic Discounting

This video explains time inconsistency or present bias in the beta-delta model. This is also known as hyperbolic discounting, and it captures myopia, procrastination and compulsive behaviors in our behavioral economic models. I show a graph of time inconsistency, and walk through an example of the model that involves procrastination. This is more technical video. 0:00 - Terminology 1:20 - Comparison of Beta-Delta Model and Classic Discounting Utility Model 4:32 - Graphical Depiction of Time Inconsistency 10:01 - Excel Tricks and Procrastination Example with Classic Discounting Utility 13:04 - Excel Tricks and Procrastination Example with Beta-Delta Discounting 15:44 - How to figure out the reasons why this works

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