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A Probabilistic Theory for Intertemporal Indifference
University of Groningen, Groningen, The Netherlands
University of Groningen, Groningen, The Netherlands
- 1 University of Groningen, Groningen, The Netherlands
- 2 University of Groningen, Groningen, The Netherlands
Theoretical Economics Letters·Volume 04 (2014)·Pages 415–424·Published 13 June 2014·DOI10.4236/tel.2014.46053
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Abstract
This paper provides a closed form distribution for the probability of intertemporal indifference between a certain quantity of a commodity now, Q (0) = q 0 , and some future quantity Q ( T ) = q at time t = T assuming a discount w eight, w ( T ) ∈ (0,1) .
KeywordsIntertemporal IndifferenceCommodity
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