Difference between revisions 109097403 and 109097407 on dewiki

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Given two similar rewards, humans show a preference for one that arrives sooner rather than later. Humans are said to ''discount'' the value of the later reward, by a factor that increases with the length of the delay. In [[behavioral economics]], '''hyperbolic discounting''' is a particular mathematical model thought to approximate this discounting process; that is, it models how humans actually make such valuations. Hyperbolic(contracted; show full)

The degree of discounting is vitally important in describing hyperbolic discounting, especially in the discounting of specific rewards such as money. The discounting of monetary rewards varies across age groups due to the varying discount rate.<ref name="Green et al"/> The rate depends on a variety of factors, including the species being observed, age, experience, and the amount of time needed to consume the reward.<ref>Loewenstein, G. and 
[[Drazen Prelec|Prelec, D.]] (1992). ''Choices Over Time'' New York, Russell Sage Foundation</ref><ref>Raineri, A., and Rachlin, H. (1993). The effect of temporal constraints on the value of money and other commodities. ''Journal of Behavioral Decision-Making, 6,'' 77-94.</ref>

==Mathematical model==
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* Ainslie, G. (2001) ''Breakdown of Will'' Cambridge, Cambridge University Press, ISBN 978-0521596947
* Musau, A. (2009): Modeling Alternatives to Exponential Discounting, MPRA Paper 16416, University Library of Munich, Germany.
* Rachlin, H. (2000). ''The Science of Self-Control'' Cambridge;London: Harvard University Press

[[Category:Cognitive biases]]
[[Category:Behavioral finance]]

[[pl:Hiperboliczne obniżenie wartości]]