Rural land development under hyperbolic discounting: a real option approach

被引：0
作者：
Di Corato L. [1 ]
机构：
[1] Dipartimento Jonico, Università degli Studi di Bari, Via Duomo, 259, Taranto
来源：
Letters in Spatial and Resource Sciences | 2018年 / 11卷 / 2期
关键词：
Land development; Real options; Stochastic hyperbolic discounting; Timing game;
D O I：
10.1007/s12076-018-0209-2
中图分类号：
学科分类号：
摘要：
This article presents a simple model of land development under uncertainty and hyperbolic discounting. Land kept in rural use pays an uncertain rent, while net returns from land development are known and constant. The landowner is viewed here as a sequence of selves with time-inconsistent preferences. We solve the underlying timing game under both naïve and sophisticated beliefs about the landowner’s time-inconsistency and show that (i) land development is accelerated due to his present-bias and (ii) a higher acceleration is associated with sophistication. © 2018, Springer-Verlag GmbH Germany, part of Springer Nature.
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页码：167 / 182
页数：15
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