WebJan 30, 2014 · This occurs because a rational agent discounting geometrically has no incentive to explore more than a certain amount as the reward it receives from the extra knowledge occurs too far in the future. WebDec 1, 2024 · Quasi-geometric discounting in cash-in-advance economy. ☆. This paper develops a dynamic general equilibrium model in which households have a preference of …

Generalized quasi-geometric discounting - ScienceDirect

WebDiscounting: To see how this can work, we first need to determine how players evaluate an infinite stream of future payoffs. We assume that players discount future payoffs. I.e., they place less value on a payoff received in the future than they would place on the … In economics exponential discounting is a specific form of the discount function, used in the analysis of choice over time (with or without uncertainty). Formally, exponential discounting occurs when total utility is given by where ct is consumption at time t, is the exponential discount factor, and u is the instantaneous utility function. mhra press office

Why Discount Future Rewards In Reinforcement Learning?

WebNov 3, 2003 · Consumption–Savings Decisions with Quasi–Geometric Discounting. Per Krusell, Per Krusell. University of Rochester, NY, U.S.A., and Centre for Economic Policy … WebOct 14, 2009 · In other words, the discount factor d t = d t induces an “internal” discount-relate time horizon 0, τ with the geometrically distributed τ. Conversely, any geometrically distributed τ and the criterion E ∑ t = 0 τ V t induces the geometric discounting in the sum ∑ t = 0 ∞ d t V t. Remark 4.1. (Random stopping time horizon). WebIn other words, discounting is quasi-geometric: it is geometric across all dates except the current date. We assume that δ < 1 and β < 1.4 This formulation embodies an … mhra primary source