Are Delay and Interval Effects the Same Anomaly in the Context of Intertemporal Choice in Finance?
MetadataShow full item record
Traditionally, the interval and delay effects have been identified and considered as the same anomaly in the context of intertemporal choice, when individuals or groups of individuals make their decisions about reward preferences. This has supposed that most studies on this topic have been focused on the delay effect and, consequently, that the discount functions provided by the existing literature have considered only this effect. This is the case of hyperbolic discounting, which has been used to describe the delay, but not the interval effect. Therefore, the main objective of this paper is to carry out a detailed analysis of both anomalies, which will allow us to mathematically relate them, thus finding their analogies and differences. To do this, we will first analyze the concept of delay effect and later the different definitions of the interval effect. The main conclusion of this paper is twofold. On the one hand, if the benchmark for valuation is fixed, the delay effect coincides...
managerial decision making