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AREA UNDER THE CURVE AS A MEASURE OF DISCOUNTING

2001/09/01 by Joel Myerson, Leonard Green, Missaka Warusawitharana · 3 citations

paper · doi:10.1901/jeab.2001.76-235

crossref issued 2001/09/01 · crossref published 2001/09/01 · crossref published-print 2001/09/01 · crossref created 2006/03/02 · crossref published-online 2013/02/26 · crossref deposited 2023/11/18 · crossref indexed 2026/08/01

Abstract

We describe a novel approach to the measurement of discounting based on calculating the area under the empirical discounting function. This approach avoids some of the problems associated with measures based on estimates of the parameters of theoretical discounting functions. The area measure may be easily calculated for both individual and group data collected using any of a variety of current delay and probability discounting procedures. The present approach is not intended as a substitute for theoretical discounting models. It is useful, however, to have a simple, univariate measure of discounting that is not tied to any specific theoretical framework.

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