Journal of Risk and Uncertainty

, Volume 23, Issue 1, pp 5–32

Is Time-Discounting Hyperbolic or Subadditive?

  • Daniel Read

DOI: 10.1023/A:1011198414683

Cite this article as:
Read, D. Journal of Risk and Uncertainty (2001) 23: 5. doi:10.1023/A:1011198414683


Subadditive time discounting means that discounting over a delay is greater when the delay is divided into subintervals than when it is left undivided. This may produce the most important result usually attributed to hyperbolic discounting: declining impatience, or the inverse relationship between the discount rate and the magnitude of the delay. Three choice experiments were conducted to test for subadditive discounting, and to determine whether it is sufficient to explain declining impatience. All three experiments showed strong evidence of subadditive discounting, but there was no evidence of declining impatience. I conclude by questioning whether hyperbolic discounting is a plausible account of time preference.

decision makingintertemporal choicehyperbolic discountingsupport theory

Copyright information

© Kluwer Academic Publishers 2001

Authors and Affiliations

  • Daniel Read
    • 1
  1. 1.Department of Operational ResearchLondon School of Economics and Political ScienceLondonUnited Kingdom