Some Common Confusions about Hyperbolic Discounting

Eric Rasmusen ()

No 2008-11, Working Papers from Indiana University, Kelley School of Business, Department of Business Economics and Public Policy

Abstract: There is much confusion over what "hyperbolic discounting" means. I argue that what matters is the use of relativistic instead of objective time, not the shape of the discount function.

Keywords: time inconsistency; hyperbolic discounting (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cbe
Date: 2008-03
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