A generalization of the q-exponential discounting function

Salvador Cruz Rambaud and María José Muñoz Torrecillas

Physica A: Statistical Mechanics and its Applications, 2013, vol. 392, issue 14, 3045-3050

Abstract: The aim of this paper is to generalize the q-exponential discounting function introduced by Cajueiro (2006) [1] using the hyperbolic function as a base. The presented generalization has two aspects. First, we consider any discounting function F(t), and not just hyperbolic discounting. Second, the value of the parameter q is extended to the joint interval (−∞,1)∪(1,+∞). In this way, we have found a family of discounting functions whose elements are subadditive or superadditive according to the value of q.

Keywords: Discounting; Inconsistency; Hyperbolic; Exponential; Subadditive; Econophysics (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:392:y:2013:i:14:p:3045-3050

DOI: 10.1016/j.physa.2013.03.009

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