Collective dynamic choice: The necessity of time inconsistency

TitleCollective dynamic choice: The necessity of time inconsistency
Publication TypeJournal Article
Year of Publication2015
AuthorsJackson MO, Yariv L
JournalAmerican Economic Journal: Microeconomics
Volume7
Pagination150–178
Date Publishednov
ISSN19457685
AbstractWe study collective decisions by time-discounting individuals choosing a common consumption stream. We show that with any heterogeneity in time preferences, every Pareto efficient and non-dictatorial method of aggregating utility functions must be time-inconsistent. We also show that decisions made via non-dictatorial voting methods are intransitive.
URLhttp://pubs.aeaweb.org/doi/10.1257/mic.20140161
DOI10.1257/mic.20140161