Why We Should Discount the Views of Those Who Discount Discounting
نویسندگان
چکیده
منابع مشابه
How should we discount the costs of financial distress?*
Practitioners and academics usually discount expected future costs of financial distress using a government bond yield, and sometimes using the firm’s own cost of debt. We argue that this practice is wrong and that it underestimates the true present value of distress costs, because distress is more likely to happen when other assets perform poorly. Thus, the costs of financial distress must be ...
متن کاملHyperbolic discounting and the standard model: Eliciting discount functions
Experiments on static intertemporal choice nd evidence of particularly extreme impatience toward immediate rewards. While this is often taken as support for hyperbolic discounting, it could also arise because the most likely participants in experiments are also those with the most immediate need for money. We conduct a calibration exercise and nd that the extreme impatience observed in experi...
متن کاملDiscount Sensitivity – Are We All Equal?
The high adoption of smart mobile devices among consumers is an opportunity for ecommerce retailers to increase their sales by recommending consumers with real time, personalized coupons which take into account the specific contextual situation of the consumer [5]. While context-aware recommender systems (CARS) have been widely analyzed [1,2] personalized pricing or discount optimization in rec...
متن کاملShould we discount the far-distant future at its lowest possible rate?
In this paper, we elaborate on an idea initially developed by Weitzman (1998) that justifies taking the lowest possible discount rate for far-distant future cash flows. His argument relies on the arbitrary assumption that when the future rate of return of capital (RRC) is uncertain, one should invest in any project with a positive expected net present value. We examine an economy with a risk-av...
متن کاملShould we Discount the Far-Distant Future at ist Lowest Possible Rate?
In this paper, we elaborate on an idea initially developed by Weitzman (1998) that justifies taking the lowest possible discount rate for far-distant future cash flows. His argument relies on the arbitrary assumption that when the future rate of return of capital (RRC) is uncertain, one should invest in any project with a positive expected net present value. We examine an economy with a risk-av...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: The Yale Law Journal
سال: 1999
ISSN: 0044-0094
DOI: 10.2307/797455