Monday, May 19, 2008

Some Common Confusions about Hyperbolic Discounting

Rasmusen (2008) suggests that there is much confusion over what "hyperbolic discounting" means. He argues that what matters is the use of relativistic instead of objective time, not the shape of the discount function. The paper is interesting and worth a read. Available here.

1 comment:

Anonymous said...

Such a nice blog. I hope you will create another post like this.