ABSTRACT
This chapter surveys a variety of formal models of intertemporal choice, with emphasis on probabilistic and dynamic models. Intertemporal choice has long been investigated from a deterministic, static, and alternative-wise perspective, leading to the widely adopted discounted utility (DU) model and hyperbolic discounting model. To accommodate choice variability in empirical data, deterministic choice models should be extended so that they are capable of predicting moderate choice probabilities. Random utility models are another class of probabilistic choice models that accommodate choice variability by introducing random components into relevant deterministic utility models. The constant error model, which assumes a 'trembling hand' mechanism for the choice variability in observed data, is the simplest possible probabilistic choice model. For the static models, such as logistic models and the tradeoff model, the underlying mental architecture is not well defined since they are not intended to be process models of intertemporal choice.
