Large Sharpening Intertemporal Prospect Theory

Pushpa Rathie, University of Brasilia
Carlos Radavelli, Federal University of Santa Catarina
Sergio Da Silva, Federal University of Santa Catarina

Abstract

Prospect theory of risky choices has been extended to encompass intertemporal choices. Presentation of intertemporal prospect theory suffers from minor mistakes, however. To clarify the theory we restate it and show further mistakes in current presentations of value and discount functions.