Tag Archives: Hyperbolic discounting

The Importance of Hyperbolic Discounting

December 16, 2010 10:40 am
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By N. If one is to be a great advisor we need to be aware of our client’s psychological make-up when it comes to investing. Is my client an exponential or hyperbolic discounter? Exponential discounters place a higher value on future benefits and hyperbolic discounters place a lower value on …

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Behavioral Finance Discussion: Discounting Future Values

December 14, 2010 11:35 am
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By K. A product or service to be obtained in the future is of inherently less worth than the same good or service obtained presently. This discounting of the value is necessary to compensate the individual for the delay in satisfying the associated want or need. The greater the time …

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