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How to interpret hyperbolic discounting functions

  1. May 29, 2008 #1


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    Graphs are above. The thing is, the hyperbolic discounting curve is 1/(1+kt) and the exponential one is current value = nondelayed value x (1 - discount rate)^delay. By those two curves, value should decrease with respect to time. But the graphs of value above all increase with respect to time. Can anyone clarify these for me? Thanks.
  2. jcsd
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