We derive a representation theorem for time preferences (on the prize-time space) which identifies a novel notion of relative discounting as the key ingredient. This representation covers a variety of time preference models, including the standard exponential and hyperbolic discounting models and certain non-transitive time preferences, such as the similarity-based and subadditive discounting models.
A Theory of (Relative) DiscountingEfe A. Ok and Yusufcan Masatlioglu ,
1( 137 )
Journal of Economic Theory