A Utility Theory Approach to Preferences for Money Over Time.
Abstract
When a decision maker considers possible returns from a business project or investment, he often faces the problem that these returns are not all received at the same time, and thus he must make some adjustments to take account of his time preference for money. The report uses utility theory to examine the problem of evaluating time streams of income both in circumstances of certainty and uncertainty with regard to the exact value and timing of the incomes. Three different approaches to this problem are examined and contrasted. (Author Modified Abstract)
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 1972
- Accession Number
- AD0756189
Entities
People
- David E. Bell
Organizations
- Massachusetts Institute of Technology