Uncertainty and Hyperbolic Discounting

@inproceedings{Dasgupta2004UncertaintyAH,
  title={Uncertainty and Hyperbolic Discounting},
  author={Partha Dasgupta and Eric Maskin},
  year={2004}
}
Empirical studies in economics and behavioral ecology suggest that, ceteris paribus, animals and humans appear to place less weight on the future than on the present, i.e., they act as though they discount future payoffs. Furthermore (and more interestingly), they do so with discount rates that increase as the time before those payoffs are realized grows shorter. In other words, subjects act as though they become less patient when payoffs are more imminent. An anecdotal (human) example is… CONTINUE READING

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