Time Discounting Supported with Perspective Images

Abstract

It is saying more frequently that the simple discounting, known also as the hyperbolic one, is better than the exponential discounting despite of such defaults as the lack of the compounding recurrence and of the time inconsistency in the preference ordering. It has been proved that the absence of the compounding procedure is untrue and what's more, it is the hyperbolic discounting which can be named as the dynamic one. For the time inconsistency problem it has been shown that it is about a controversial isometric projection. When a perspective projection is applied, the discounted hyperbolically values form the realistic images on which none of curiosities were present. The last ones have appeared however on the perspective images based on the exponential discounting.

Keywords: discounting, perspective projection, visualization

JEL Classification: G10