Hyperbolic Discounting of the Far-Distant Future

Preprint English OPEN
Anchugina, Nina; Ryan, Matthew; Slinko, Arkadii;
  • Subject: Quantitative Finance - Economics
    arxiv: Mathematics::Optimization and Control | Computer Science::Computer Science and Game Theory

We prove an analogue of Weitzman's (1998) famous result that an exponential discounter who is uncertain of the appropriate exponential discount rate should discount the far-distant future using the lowest (i.e., most patient) of the possible discount rates. Our analogou... View more
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