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Assuming an exponential discounting model we estimate discount rates to be 9% on average.
The authors analyzed a credit card dataset and used a hyperbolic discounting model to rationalize observed behavior of consumers.
Pioneered by Ainslie (1992), psychologists and behavioural economists have therefore proposed to replace Samuelson's exponential discounting model with a model of hyperbolic discounting.
We also performed model-based fMRI data analyses based on a hyperbolic discounting model (see Fig. S4).
By assuming an exponential discounting model, we estimated the discount factor γ for each subject in each condition (see Text S1).
We performed model-based fMRI data analyses based on an exponential discounting model (see Materials and Methods): <img src="http://journals.plos.org/plosone/article/asset?id=info?doi/10.1371/journal.pone.0001333.e002.PNG" class= inline-graphic"/> which was supported in our previous delay discounting choice task [19].
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The debate revolves around several aspects, including the issue of time-varying discount rates to reflect time preference [ 19, 20] or discounting models in relation to effectiveness measures [ 21], but the core controversy centres mainly on whether the health benefits of a given intervention should be discounted at a lower rate than the costs or at the same, uniform rate [ 22, 23].
These contig spectra were provided to CatchAll and the estimated richness using the best model and the best discounted model were recorded.
Additionally, as some of the health outcomes such as cancers have long incubation periods between exposure and clinical detection of the disease, these lag times were considered in the discounted model.
Over-generalization of hyperbolic discounting models should thus be avoided.
This study found that hyperbolic discounting models specifically those of Mazur (1987) and Loewenstein and Prelec (1992), fitted the data better.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com