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Discounted utilitarianism and the Ramsey equation prevail in the debate on the discount rate on consumption. The utility discount rate is assumed to be constant and to reflect either the uncertainty about the existence of future generations or a pure preference for the present. The authors...
Persistent link: https://www.econbiz.de/10010417163
Discounted utilitarianism and the Ramsey equation prevail in the debate on the discount rate on consumption. The utility discount rate is assumed to be constant and to reflect either the uncertainty about the existence of future generations or a pure preference for the present. The authors...
Persistent link: https://www.econbiz.de/10010507755
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in the direction of “hyperbolic” or quasi-hyperbolic discounting. That is, individuals have a steeper discount rate for a … new task, many subjects exhibit “hypobolic” discounting, the opposite of the standard finding. This result does not appear … to be a consequence of payout risk. The result suggests that hyperbolic discounting may be subject to the framing of …
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Consumers love to pay less and get more. But are better deals at the retail point of sale always welfare-enhancing? This question points to the puzzle of bundling and bundled discounts. The antitrust concerns raised by a recent set of agreements in the telecommunications sector, allowing for the...
Persistent link: https://www.econbiz.de/10013064277
Customized temporal discounts are price cuts or coupons that are tailored by size, timing, and household to maximize profits to a retailer or manufacturer. The authors show how such discounts allow companies to optimize to whom, when, and how much to discount. Such a scheme allows firms to send...
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efficiency, but also because loyalty discounts can perversely discourage discounting even when they have no effect on rival …
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