The shortcomings of conventional discounting, especially in the context of long-run environmental problems, have been … extensively discussed in the literature. Recently, hyperbolic discounting, i.e. discounting at declining instead of constant … for employing hyperbolic discounting, there are also pitfalls, which have to be pointed out. In this paper I show that the …

/exponential discounting) when utility function is linear. DIU has several advantages over discounted utility (and its generalizations — quasi …-hyperbolic and generalized hyperbolic discounting): a) time preferences are continuous; b) utility does not increase when a larger …

The discount rate is of great importance for all decisions in an intertemporal context, such as the decision of how …