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Most current models of delay discounting multiply the nominal value of a good whose receipt is delayed, by a discount factor that is some function of that delay. This article

Most current models of delay discounting multiply the nominal value of a good whose receipt is delayed, by a discount factor that is some function of that delay. This article reviews the logic of a theory that discounts the utility of delayed goods by adding the utility of the good to the disutility of the delay. In limiting cases it approaches other familiar models, such as hyperbolic discounting. In nonlimit cases it makes different predictions, generally requiring, inter alia, a magnitude effect when the value of goods is varied.

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Date Created
  • 2015-01-01
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  • Text
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    Identifier
    • Digital object identifier: 10.1002/jeab.130
    • Identifier Type
      International standard serial number
      Identifier Value
      1938-3711
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    Killeen, Peter R. (2015). THE ARITHMETIC OF DISCOUNTING. JOURNAL OF THE EXPERIMENTAL ANALYSIS OF BEHAVIOR, 103(1), 249-259. http://dx.doi.org/10.1002/jeab.130

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