Golden eggs and hyperbolic discounting
Laibson studied a consumer with hyperbolic discounting, which causes preferences to shift over time and can motivate the person to limit their own future choices, and gave the consumer a partial commitment tool in the form of an illiquid asset that must be put up for sale a period before the proceeds arrive. The model links spending to income and explains why different assets lead to different spending out of wealth.
Laibson studied a consumer with hyperbolic discounting, which causes preferences to shift over time and can motivate the person to limit their own future choices, and gave the consumer a partial commitment tool in the form of an illiquid asset that must be put up for sale a period before the proceeds arrive. The model links spending to income and explains why different assets lead to different spending out of wealth.
Written from the abstract, EconPapers (RePEc) record, 2026-11-02; citation metadata checked against Crossref.
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Laibson, D. (1997). Golden eggs and hyperbolic discounting. Quarterly Journal of Economics, 112(2), 443-478. doi:10.1162/003355397555253 https://doi.org/10.1162/003355397555253