An article of the economists Han Bleichrodt and Peter Wakker of Erasmus School of Economics, written together with Arthur Attema (iBMG) and two of their PhD candidates Yu Gao and Zhenxing Huang, is forthcoming in the prestigious international scientific journal the American Economic Review. They introduce a completely new approach of measuring the discounting of money over time.
The research field they cover in the paper has been a prominent area of research within the (financial) economic literature over the past decades. This is because utility and the discounting of it is of great importance to understand and model the behaviour of people. Their method seems to have some advantages over traditional methods, as it is easier to implement, clearer to subjects, and require fewer measurements than existing methods.Â