We study repeated games with discounting where perfect monitoring is possible, but costly. It is shown that if players can make public announcements, then every payoff vector which is an interior point in the set of feasible and individually rational payoffs can be implemented in a sequential equilibrium of the repeated game when the discount factor is high enough. Thus, efficiency can be appro...

This study presents some evidence of discount rate selection on goodwill impairment testing under the new requirements of FRS 36. The selection of discount rates is believed to be an important key factor that affects the outcome of impairment assessment, especially when using the method of value in use. This study objectively examines the Singapore listed firm’s selection of discount rates disc...

We study infinitely repeated games with perfect monitoring and without public randomization devices. Both symmetric and asymmetric discounting cases are considered; a new geometric construct called “self-accessibility” is proposed and used to unify the analyses of these two cases. In the case of symmetric discounting, our approach delivers a constructive version of the folk theorem of Fudenberg...

This paper considers optimal social insurance in a dynamic moral hazard economy. The existing literature has focussed on environments in which a planner and a population agents share the same discount factor. A key finding is that agents are almost surely immiserated: their welfare is driven to its lowest bound. We show that this immiseration result does not hold when the planner’s discount fac...

It is widely recognized that the economics of distant-future events, like climate change, is critically dependent upon the choice of a discount rate. Unfortunately, it is unclear how to discount distant-future events when the future discount rate itself is unknown. In previous work, an analytically-tractable approach called ‘‘gamma discounting’’ was proposed, which gave a declining discount rat...

Abstract In this paper, Markov chain and dynamic programming were used to represent a suitable pattern for tax relief and tax evasion decrease based on tax earnings in Iran from 2005 to 2009. Results, by applying this model, showed that tax evasion were 6714 billion Rials**. With 4% relief to tax payers and by calculating present value of the received tax, it was reduced to 3108 billion Rials. ...

This paper studies the robust optimization for the single allocation p-hub median problem under discount factor uncertainty. We develop the discount factor as a novel uncertain parameter, which represents different connection modes between hubs. The discount factor can be described by a random variable with discrete distribution in nominal case. We apply a robust optimization approach to deal w...

Time preferences are a dominant influence in cost-benefit analyses of long-term issues such as climate change. FUND, a model for optimal emission control, is used to spell out this influence. Classic discounting at various rates is contrasted with Heal discounting where the discount factor depends logarithmically on the time distance (it does linearly in the classic case), and Rabl discounting ...