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AREA UNDER THE CURVE AS A MEASURE OF DISCOUNTING
Author(s) -
Myerson Joel,
Green Leonard,
Warusawitharana Missaka
Publication year - 2001
Publication title -
journal of the experimental analysis of behavior
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.75
H-Index - 61
eISSN - 1938-3711
pISSN - 0022-5002
DOI - 10.1901/jeab.2001.76-235
Subject(s) - discounting , delay discounting , measure (data warehouse) , univariate , econometrics , function (biology) , computer science , statistics , mathematics , multivariate statistics , economics , data mining , finance , evolutionary biology , biology
We describe a novel approach to the measurement of discounting based on calculating the area under the empirical discounting function. This approach avoids some of the problems associated with measures based on estimates of the parameters of theoretical discounting functions. The area measure may be easily calculated for both individual and group data collected using any of a variety of current delay and probability discounting procedures. The present approach is not intended as a substitute for theoretical discounting models. It is useful, however, to have a simple, univariate measure of discounting that is not tied to any specific theoretical framework.