Collective dynamic choice: The necessity of time inconsistency

Publication Year
2015

Type

Journal Article
Abstract
We 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.
Journal
American Economic Journal: Microeconomics
Volume
7
Pages
150–178
Date Published
nov
ISSN Number
19457685