Question
In a model of this phenomenon’s exponential form, utility in period 1 is multiplied by a namesake factor symbolized δ (“delta”), which becomes δ2 (“delta-squared”) in period 2, δ3 (“delta-cubed”) in period 3, and so on. For 10 points each:
[10m] Name this phenomenon, whose namesake “rate” is used to find the present value of future rewards. Many humans exhibit the hyperbolic form of this phenomenon, which is not classically rational.
ANSWER: discounting [or delay discounting; or temporal discounting; or discount function; or exponential discounting; or hyperbolic discounting; or discount factor; or discount rate; accept time preference; or exponential time preference; or hyperbolic time preference]
[10h] This co-teacher of Harvard’s “Ec 10” intro course argued that even fully rational consumers exhibit asset-specific marginal propensities to consume in the paper “Golden Eggs and Hyperbolic Discounting.”
ANSWER: David Laibson [or David Isaac Laibson]
[10e] Laibson has argued that hyperbolic discounting results in suboptimal amounts of this behavior, the decision to defer consumption by [emphasize] not spending income.
ANSWER: savings [or propensity to save; accept undersaving]
<Social Science>
Summary
| 2025 ACF Nationals | 04/19/2025 | Y | 5 | 16.00 | 100% | 60% | 0% |
Data
| Illinois A | Rutgers | 0 | 0 | 10 | 10 |
| Michigan | WUSTL B | 10 | 0 | 10 | 20 |
| Northwestern | UC Berkeley B | 10 | 0 | 10 | 20 |
| Virginia Tech | Stanford | 0 | 0 | 10 | 10 |
| Texas | Arizona State | 10 | 0 | 10 | 20 |