Choice over Time

Abstract This chapter reviews both the theoretical modeling and the experimental evidence, relating to choice over time. Most of the space is devoted to choices between outcome‐date pairs, which has been better studied, especially experimentally, but it also discusses choices between time sequences of outcomes. It distinguishes between “soft anomalies”, which can be accommodated by a simple modification of the standard exponential discounting model (e.g. hyperbolic discounting) and “hard anomalies” which pose a more fundamental challenge.