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Saturday, October 22, 2011

Valuing the Future

This makes me think about it's application in packages like Recorded Future. Though I have been taught that economic valuation is full of uncertainty, dismal science and all.  Yet valuing future can augment analyses like scenario planning.  " ... real humans behave as if resources do still have a value significantly greater than zero in the distant future, a tendency called hyperbolic discounting that economists say is "irrational" because it is not "time consistent." Under hyperbolic discounting, a person has a strong preference for getting something today rather than tomorrow, but only a weak preference for getting it on day 100 rather than day 101; yet when day 100 arrives, they will strongly prefer to get the resource immediately.... "

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