Theory and Decision

, Volume 76, Issue 1, pp 9–30 | Cite as

Hyperbolic discount curves: a reply to Ainslie

  • Andrew Musau


Ainslie (Theory and Decision, 73, 3–34, 2012) challenges our interpretation of the properties of hyperbolic discount curves in an iterated prisoners’ dilemma (IPD) model. In this reply, we discuss the emergence of hyperbolic discount functions in the behavioral economics literature and evaluate their properties. Furthermore, we present a summarized version of our IPD model and evaluate Ainslie’s points of contention.


Hyperbolic Discount function Iterated prisoners’ dilemma 

JEL Classification

C72 C73 D90 



I am especially grateful to Jochen Jungeilges for his comments, suggestions, and guidance in relation to the article that this paper references. I also thank Ellen K. Nyhus for numerous discussions on the subject, and George Ainslie for helpful comments. Financial support from the Competence Development Fund of Southern Norway is gratefully acknowledged.


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Copyright information

© Springer Science+Business Media New York 2013

Authors and Affiliations

  1. 1.Faculty of Economics and Social Sciences, University of AgderKristiansandNorway
  2. 2.School of Social Sciences, University of TrentoTrentoItaly

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