Consistent across time in classical theory

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Discounting future utility is a widely accepted assumption in classical models of inters- temporal choice. Behavioral economics adds to our understanding of time discounting with observations of inconsistent inter-temporal choice. In what sense are inter-temporal choices \consistent" across time in classical theory? What is the essential feature of the classical model that makes these choices consistent, and why are behavioral experiments contradicting this consistency? (400-500 words)

Reference no: EM13984016

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