Theory and Decision

, Volume 51, Issue 2–4, pp 145–172 | Cite as

Lifetime Uncertainty and Time Preference

  • Nicolas DrouhinEmail author


Despite Fisher's (1930) psychological intuitions of and the formal treatment given by Yaari (1965, Review of Economic Studies 32, 137), the intertemporal model of choice is mainly a model with certain lifetime. The purpose of this paper is to reconsider this assumption, starting from a very simple two-period model of choice with lifetime uncertainty. We examine the comparative statics of the model at the first two orders and replace the concept of `pure time preference' by taking into account the subjective treatment of the probability of survival.

Intertemporal choice Lifetime uncertainty Rank dependent utility 


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Copyright information

© Kluwer Academic Publishers 2001

Authors and Affiliations

  1. 1.Ecole Normale Superieure de CachanCaclanFrance

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