Discounting Models for Outcomes over Continuous Time

Charles M.  Harvey; Lars Peter Østerdal

Discounting Models for Outcomes over Continuous Time

Charles M. Harvey, Lars Peter Østerdal

Økonomisk Institut

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Abstract

Events that occur over a period of time can be described either as sequences of outcomes at discrete times or as functions of outcomes in an interval of
time. This paper presents discounting models for events of the latter type. Conditions on preferences are shown to be satisfied if and only if the
preferences are represented by a function that is an integral of a discounting function times a scale defined on outcomes at instants of time.

Originalsprog	Engelsk
Udgiver	Department of Economics, University of Copenhagen
Antal sider	28
Status	Udgivet - apr. 2011

Navn	University of Copenhagen. Institute of Economics. Discussion Papers (Online)
Nummer	12
Vol/bind	2011
ISSN	1601-2461

Emneord

Det Samfundsvidenskabelige Fakultet
integral discounting
integral value or utility function

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Citationsformater

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