Calculate present value under the quasi-hyperbolic (β-δ) discounting model where PV = u₀ + β·∑δᵗ·uₜ. The β parameter captures present bias (preference for immediate over future rewards), δ captures exponential time preference.
Enter the values for the scenario you are assessing. Calculate present value under the quasi-hyperbolic (β-δ) discounting model where PV = u₀ + β·∑δᵗ·uₜ. The β parameter captures present bias (preference for immediate over future rewards), δ captures exponential time preference. Use the hyperbolic discounting result to inform your calculation.