Exponential vs Hyperbolic Discounting: β-δ Weights & Preference Reversals
This lesson is part of the course
In this lesson
You compute exponential, hyperbolic and β-δ discount weights for a year of months and show how a hyperbolic chooser prefers 100 now over 110 next month, yet 110 in month 13 over 100 in month 12.
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Lessons in this course
- Exponential vs Hyperbolic Discounting: β-δ Weights & Preference Reversals Locked
- Present Bias & Saving: a β-δ Saver vs a Commitment Device Locked
- The Value Function: Diminishing Sensitivity, Loss Aversion λ & Mixed Gambles Locked
- Probability Weighting: Decision Weights, Long Shots & Certainty Equivalents Locked
- Framing & Mental Accounting: Segregate Gains, Integrate Losses Locked
- Anchoring Experiment: Group Means, Effect Size d & the Anchoring Index Locked
- Defaults & Nudges: Opt-In vs Opt-Out Uptake, Uplift & a Confidence Interval Locked
- Decoy Effect & Choice Architecture: Share Shifts and a Policy Summary Locked