Hyperbolic Discounting Is Rational: Valuing the Far Future with Uncertain Discount Rates

Conventional economics supposes that agents value the present vs. the future using an exponential discounting function. In contrast, experiments with animals and humans suggest that agents are better described as hyperbolic discounters, whose discount function decays much more slowly at large ti...

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Bibliographic Details
Main Authors: Farmer, J, Geanakoplos, J
Format: Book
Published: 2013