A note on the Loewenstein-Prelec theory of intertemporal choice

In one of the major contributions to behavioral economics, Loewenstein and Prelec [Loewenstein, G., Prelec, D., 1992. Anomalies in intertemporal choice: evidence and an interpretation. The Quarterly Journal of Economics 107, 573-597] set the foundations for the behavioral approach to decision making over time. We correct a number of errors in Loewenstein and Prelec (1992). Furthermore, we provide a correct, more direct and simpler derivation of their generalized hyperbolic discounting formula that has formed the basis of much recent work on temporal choice.