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Functions associated with processing reward‐related information are fundamental drivers of motivation, learning, and goal‐directed behavior. Such functions have been classified as the positive valence system under the Research Domain and Criteria (RDoC) criteria and are negatively impacted across a range of psychiatric disorders and mental illnesses. The positive valence system is composed of three comprehensive categories containing related but dissociable functions that are organized into either Reward Responsiveness, Reward Learning, or Reward Valuation. The presence of overlapping behavioral dysfunction across diagnostic mental disorders is in‐part what motivated the RDoC initiative, which emphasized that the study of mental illness focus on investigating relevant behavior and cognitive functions and their underlying mechanisms, rather than separating efforts on diagnostic categories (i.e., transdiagnostic). Moreover, the RDoC approach is well‐suited for preclinical neuroscience research, as the rise in genetic toolboxes and associated neurotechnologies enables researchers to probe specific cellular targets with high specificity. Thus, there is an opportunity to dissect whether behaviors and cognitive functions are supported by shared or distinct neural mechanisms. For preclinical research to effectively inform our understandings of human behavior however, the cognitive and behavioral paradigms should have predictive, neurobiological, and pharmacological predictive validity to the human test. Touchscreen‐based testing systems provide a further advantage for this endeavor enabling tasks to be presented to animals using the same media and task design as in humans. Here, we outline the primary categories of the positive valence system and review the work that has been done cross‐species to investigate the neurobiology and neurochemistry underlying reward‐related functioning. Additionally, we provide clinical tasks outlined by RDoC, along with validity and/or need for further validation for analogous rodent paradigms with a focus on implementing the touchscreen‐based cognitive testing systems. [ABSTRACT FROM AUTHOR]

Discount rates play a pivotal role in various fields, capturing the trade-off between present and future, influencing predictions of unhealthy behaviors. Despite substantial variations in discount rates across studies, methods, and individuals, our goal was to systematically overview diverse methods for measuring discount rates. We conducted a comprehensive literature review across multiple databases, targeting English studies introducing and utilizing discounting measurement methods in human subjects. Two authors screened titles and abstracts, with full text review split between them. Extracted data encompassed bibliographic details, theoretical aspects (e.g., discount function), and operational features (e.g., elicitation procedure). After deduplication, 4976, 218, and 83 records underwent title and abstract screening, full text screening, and inclusion, respectively. A total of 86 unique methods were identified. Predominantly, methods were devised for money (75%) and health (22%) discounting. Network analysis on citations indicated limited cross-disciplinary overlap. Only about one fourth, one third, and one third of methods possessed theoretically desirable traits: i) allowance for negative discount rates, ii) application of multiple discount functions, and iii) correction for non-linear utility of outcomes. Diverse discounting measurement methods exist, showcasing varied theoretical and operational characteristics. These differences may stem from the isolation of development in fields like psychology, experimental economics, and health economics. Our systematic review aids readers in choosing methods aligned with their priorities when measuring discount rates. [ABSTRACT FROM AUTHOR]

Conflict management is an important topic when dealing with unreliable sources information fusion in Dempster–Shafer theory. Discounting unreliable bodies of evidence has proven to be effective to decrease conflict. Based on the generalization of belief functions, a new generalization-based discounting method is proposed. When resolving conflicts with the same degree, our method can realize less information loss in comparison with other discounting methods. By simulating the process of resolving conflicts of randomly generated bodies of evidence, using entropy measurements and binary conflict as evaluation index, we show our method’s rationality and superiority. Finally, the hyperparameters of the conflict metrics are generated and generalization-based discounting is applied to classify real-world datasets. The improved classification performance further illustrates the usefulness of the method. [ABSTRACT FROM AUTHOR]

Identifying determinants of heterogeneity in health outcomes continues to be a focus in the health economic literature. In this study, we analyze whether time preferences predict health outcomes in individuals with type 1 diabetes (T1D) who use insulin pump therapy to manage their condition. We collect data on time preferences using a hypothetical matching task and estimate aggregate as well as individual‐level discounting parameters using the exponential, hyperbolic, and quasi‐hyperbolic discounting models. These parameters are then regressed against essential diabetes‐related health outcomes obtained from registries and medical records, including glycemic control, kidney function, BMI, and number of hospital contacts. Our analyses indicate that all three discounting models fit the data equally well. Except for hospital contacts, we find robust evidence that impatience, as reflected by higher discounting, predicts worse health outcomes. Additionally, present bias is associated with worse kidney function. Our findings suggest that time preferences can explain some of the heterogeneity in health among individuals with T1D and call for increased attention on the role of time preferences in the design of disease management programs for individuals with chronic conditions. [ABSTRACT FROM AUTHOR]

Legislators face a challenge when implementing long‐termist policies that prioritise sustainability and the well‐being of future generations: citizens prefer policies that pay off sooner rather than later. In this research note, I assess the hypothesis that the lifespan structures this temporal discounting effect. Do people show a particular preference for policies that pay off within, rather than beyond, their own lifetime? In a pre‐registered conjoint analysis with age‐group blocking (N = 2405), I find little evidence in support of this explanation. Although they significantly prefer nearer‐term policy benefits, citizens show no sign of especially preferring policies whose benefits will materialise within their own lifetimes. This pattern holds across a range of personal, political and philosophical differences. The temporal discounting effect is also substantially smaller than other policy features, such as how large the payoff of that policy is expected to be. Additionally, people are clearly willing in principle to trade off the timing of benefits for the scale of benefits, preferring larger later payoffs to sooner smaller ones. Across and beyond the lifespan, the sooner a policy pays off, the better. But, whenever they materialise, the bigger the societal benefits of that policy, the better. These findings strongly suggest that temporal policy discounting is not driven by selfish concerns, while also reinforcing that any such effect does not overwhelm citizens’ evaluations of policy proposals in principle. [ABSTRACT FROM AUTHOR]

Posttraumatic stress disorder (PTSD) is associated with suicidal thoughts and behaviours. Decision‐making processes and risk‐taking are prominent for coping in both, but the implications for guaranteed and probabilistic reward discounting, important components in behavioural decision‐making processes, are unclear. This study explored the relationships between PTSD and suicide risk with tendencies towards devaluing guaranteed rewards that are larger but delayed (i.e., delay discounting; DD) and devaluing larger but uncertain rewards (i.e., probability discounting; PD) for immediate but smaller rewards. The current study evaluated 498 participants (majority male [51.4%] and white [63.8%]; 33.3% screening positive for probable PTSD; 19.2% with lifetime suicide attempts; 30.8% with recent suicide ideation) on both delayed discounting and PD tasks. Provisional PTSD diagnosis, but not suicide attempts or ideation, was associated with increased PD (i.e., more devaluation of uncertain rewards). Conversely, PTSD interacted with both attempt history and ideation to predict increased delayed discounting (i.e., more devaluing of greater but delayed rewards). These results highlight how those with PTSD symptoms assign valuations to rewards, as well as how the addition of suicide risk interacts to impact these decision‐making processes. While further research is needed, this suggests potential implications for treatment as they may benefit from structuring progress in smaller, more immediate goals. [ABSTRACT FROM AUTHOR]

Reference-dependence has become a widely established phenomenon in decision making under risk, not only for monetary outcomes but also for other outcomes, e.g., related to health. However, when the prospects involve risk about timing (the time of receipt of outcomes), rather than the outcomes themselves, much less is known about reference-dependence. This study extends discounted utility to incorporate reference-dependence and is the first to test it in timing prospects. We are also the first to estimate the probability weighting function for timing prospects. For both timing and outcome risk tasks, we replicate the typical fourfold pattern of risk attitudes: risk seeking for low-probability gains, risk aversion for high-probability gains, risk aversion for low-probability losses and risk seeking for high-probability losses. In other words, we find substantial pessimism with regard to high probabilities in the gain domain and low probabilities in the loss domain, and probabilistic optimism for low probabilities in the gain domain and high probabilities in the loss domain. Furthermore, we report loss aversion for outcome risks, while for timing risks, we find the opposite result, which we term earliness seeking. In sum, we find substantial empirical support for reference-dependent discounting. Our results show that psychological biases are also important when timing is risky, although the direction of bias may differ. [ABSTRACT FROM AUTHOR]

How does one become a good leader? The authors suggest that the path toward professional autonomy is illustrated by the affinity continuum. This is an original model of how skills are acquired based on a descriptive approach to a learner's affinity to those skills. The authors describe trainer strategies that support reaching higher affinity levels in a learner and link them to a specific teaching style. The transitions between the stages are illustrated with a case study of a teacher trainee learning to use the drama triangle. Three affinity stages are presented—tentative, symptomatic, and conceptual—each of which is accompanied by the identification of discounts that are typically observed in trainees in the given affinity stage. The fourth stage is professional autonomy, where the skill becomes an integral part of the learner's skill set and professional self. The authors propose that effective leaders should strive for professional autonomy and that they can use the affinity continuum as a tool for supporting the growth of their team. [ABSTRACT FROM AUTHOR]

The vast majority of studies on discounting have focused on simple delayed outcomes, but most everyday decisions are more complicated. The present experiment focused on one such scenario, an iconic self‐control situation in which immediate gains are followed by delayed losses. The same participants were studied in all conditions to permit examination of individual differences in choice behavior using intercorrelations and factor analysis. Consistent with previous research, the hyperboloid model accurately described the form of the discounting function and discounting was not affected by the amount of the delayed loss when it was presented alone. However, replicating other studies, smaller delayed losses were discounted more steeply than larger ones when presented in combination with immediate gains. Exploratory factor analysis revealed two factors, one loading primarily on loss‐only conditions and the other loading primarily on conditions involving outcomes that combined gains and losses. These results imply that there are individual differences in how one combines gains and losses and that this characteristic of individual decision making might be an important predictor of decisions in the many everyday choice situations that involve complex outcomes. [ABSTRACT FROM AUTHOR]

Basic management approaches are proposed for the risks that business entities may encounter when investing in Russian industry in the digital era. Possible means of reducing exposure to risks and indeterminacies associated with the formation of a digital space and threats to digital security are outlined. Assessment of the risks affecting project efficiency is considered. [ABSTRACT FROM AUTHOR]

Discounting is a manifestation of behavioral impulsivity, which is closely related to self-regulation processes. The decision-making process for intertemporal choices is governed by the inhibition of impulses, which can influence both risk and time-related attitudes. This paper utilizes self-reported measures of risk, impatience, and impulsivity attitudes to examine their impact on the implicit discount rate used when weighing the current purchase cost against future energy savings of appliances. It analyzes and tests the interplay between these attitudes using specific functional forms and causal models. The results highlight the role of risk, impatience and impulsivity on the discount rate and the biases that arise from omitting impulsive attitudes. In addition, other factors such as environmental and social preferences, attitudes, and financial constraints contribute to the implicit discount rate. [ABSTRACT FROM AUTHOR]

We developed and examined a laboratory preparation with adult humans that pits shorter term avoidance over longer term positive reinforcement and may serve as a useful laboratory functional analogue of problematic behavior. Participants were exposed to choices between (1) avoiding an aversive sound and acquiring no money or (2) listening to an aversive sound for a set duration and then receiving money. The first choice, avoiding an aversive sound and acquiring no money, was conceptualized as immediate negative reinforcement and no positive reinforcement, whereas the latter choice, listening to an aversive sound for a set duration and then receiving money, was conceptualized as a potential positive punisher paired with a larger later positive reinforcer. We manipulated the duration of the sound and the magnitude of money to identify the point at which individual participants' choices changed from avoiding the sound to choosing the sound plus money. As the sound duration increased, the choice of listening to the sound and receiving money decreased. Similar functions were observed with two different monetary magnitudes. The model has potential applicability to real‐world problems such as smoking, addiction, gambling, anxiety disorders, and other impulse control disorders. [ABSTRACT FROM AUTHOR]

In this meta‐analysis, we describe a benchmark value of delay and probability discounting reliability and stability that might be used to (a) evaluate the meaningfulness of clinically achieved changes in discounting and (b) support the role of discounting as a valid and enduring measure of intertemporal choice. We examined test–retest reliability, stability effect sizes (dz; Cohen, 1992), and relevant moderators across 30 publications comprising 39 independent samples and 262 measures of discounting, identified via a systematic review of PsychInfo, PubMed, and Google Scholar databases. We calculated omnibus effect‐size estimates and evaluated the role of proposed moderators using a robust variance estimation meta‐regression method. The meta‐regression output reflected modest test–retest reliability, r =.670, p <.001, 95% CI [.618,.716]. Discounting was most reliable when measured in the context of temporal constraints, in adult respondents, when using money as a medium, and when reassessed within 1 month. Testing also suggested acceptable stability via nonsignificant and small changes in effect magnitude over time, dz = 0.048, p =.31, 95% CI [−0.051, 0.146]. Clinicians and researchers seeking to measure discounting can consider the contexts when reliability is maximized for specific cases. [ABSTRACT FROM AUTHOR]

Optimal groundwater management is a necessary condition for achieving the objective of sustainable development, which is directly linked to issues of intergenerational equity. Thus, groundwater management policy shaping has to consider such issues, in particular through the implementation of appropriate discounting methods. The existing literature in the field of groundwater management focuses on a single discount function (DF), the exponential one, without considering the impact of different DFs on the results obtained. At the same time, tradable water rights (TWR) systems have been suggested as policy instruments for more efficient and sustainable water use. This paper focuses on the impact that different DFs have on the formulation of groundwater management policies based on TWR. To this end, a dynamic model is formulated, which concerns groundwater pumping from an aquifer by two groups of users participating in a TWR system and four different DFs are considered to calculate the present value of social welfare: no discounting, exponential, hyperbolic and Gamma discounting. The results of simulations based on data for an aquifer in Northern Greece show that there is a high sensitivity of the results to the DF, which has a direct effect on social welfare from groundwater consumption, aquifer's hydrological behavior and TWR system intertemporal economic efficiency. [ABSTRACT FROM AUTHOR]

An extensive climate policy literature provides various recommendations for mitigating climate change, but these recommendations are not supported democratically, since the models employed consider either infinitely-lived individuals or normative social objectives (or both). In contrast, the present paper provides policy recommendations capable of incorporating democratic processes. I develop an overlapping generation model with political process micro-foundations and show how democratic climate policies are interconnected with other democratic policies. Time inconsistent social objectives combined with commitment issues lead to an inefficient tax on capital accumulation and a climate policy below the efficient level; while suppressing the tax on capital accumulation generates a climate policy even further below the efficient level. I derive a novel politico-economic Keynes–Ramsey rule for the market interest rate, which is useful for calculating the climate policy level. I show that individual pure time preference, individual altruism toward descendants, and young generation political power are key determinants of democratic climate policy ambition. [ABSTRACT FROM AUTHOR]

When evaluating the value of a particular firm or asset, to calculate the final result objectively and consider the critical variables of the market conjuncture, it is necessary to select the optimal discount rate, which will be used to assess the riskiness of cash flows. The discount rate should reflect all possible premiums impacting the financial and non-financial riskiness of the evaluated asset. In particular, for calculating the value of the loan obligation, the discount rate must reflect the default premium, which implies the risk that the borrower will not be able to repay the obligation in the predetermined volume and term stipulated by the agreement. On the other hand, when investing with equity, the discount rate should reflect the equity risk premium. Therefore, a logical question arises: how do we measure the riskiness of default and investor's equity? It is rational to share the opinion that assessing the risk from the investors' point of view and subsequently converting it into a numerical indicator is a rather complex task, especially when it comes to developing countries, where the sources of market risk, measurability, are even more obscure and require additional observation and study. Therefore, the selection of the optimal model, which is as close as possible to reality and, at the same time, can quickly reflect all the risk factors that affect the investment, is critically important. This task is complex for an investor, but based on theoretical and practical knowledge, experience, and logic, it is possible to cope with this challenge. Financial and economic representatives unanimously agree that selecting an effective numerical model for calculating the cost of equity and reflecting relevant risk factors in it is beneficial both for local and global investors and for a developing country's stable economic growth. Improving the cost of capital methodology can transmit positive results to the economy and its agents through several channels. Within the framework of the article, a comparative analysis of numerical models for measuring investment cost was carried out. In the first part of the article, the theoretical and practical numerical models in the financial and economic literature were reviewed in detail. After that, an analysis of the capital asset pricing model, arbitrage pricing model, multifactor, and alternative models was carried out, the shortcomings and advantages of each model were reviewed, as well as a discussion was made about how realistic the assumptions behind these models are and how materially damaging the existence of these assumptions can be to the numerical results, of the model as a predictor of expected returns. The next part of the article analyzed which numerical model should be used and what changes are needed so that the standard financial models for calculating the cost of equity would reflect the systemic risk environment of the developing country relevantly. The literature review shows several main directions to choose from when selecting a measurement model for expected returns. Within the article, the decision to choose a model for calculating the cost of capital in developing countries is based on theoretical and pragmatic considerations. During the selection of the methodology, further questions were asked: to what extent is it possible to obtain information about the variables required to use the numerical model, how simple and intuitive the essence of the model, and what the interpretation of the results derived from it will be for the reader, which model, as a determinant of future expected returns, is inclined to use in the empirical studies carried out in the financial field. After analyzing and evaluating the questions arising from all the factors mentioned earlier, a modified version of the capital asset pricing model was selected. Modifying the capital asset pricing model allows for a change in the standard approach and reflects all the additional risk factors that may characterize the economy of a developing country. The essence of the modification lies in including an additional premium in the numerical model, which will reflect and try to reflect local financial and non-financial riskiness in numerical indicators. Aswat Damodaran notes that the modified CAPM's main advantage is its simplicity and intuitiveness in assessing the relationship between risk and opportunities. Also, Damodaran emphasizes that more sophisticated and complex numerical models, such as arbitrage pricing, Fama and French 3-factor, and other models, despite being better explainers of historical trends, empirical research shows that they cannot offer Significantly improved forecasts of expected rates of return compared to CAPM, it is therefore not surprising that the capital asset pricing model is still the most popular and applicable to investors today. Calculating the cost of equity is a rather complex and time-consuming process, which in turn requires a reliable information resource, in-depth knowledge of the field, and a detailed analysis of the features of the potential investment proposal. When an investment decision is made in the market of a developing country, all the circumstances mentioned above are associated with additional risk factors, such as access to historical databases, reliable information resources, the existence of political risks, low level of development of the country's financial infrastructure, low transparency of the market, increased signs of corruption and others. Hence, directly selecting and transferring the numerical model that is used in developed markets to the market of a developing country could be materially damaging and not lead to optimal financial decision-making for the investor. Based on this fact, within the framework of the article, a traditional, wellknown capital asset pricing model was selected and recommended, which should be modified and include a premium relevant to a developing country's systemic risk. On the other hand, as mentioned at the beginning of the article, the numerical model for calculating the investment discount rate, which is consistent with economic and financial logic, is beneficial for the economy of a developing country in many ways, including effective allocation of resources among economic agents, support for the development of financial infrastructure, increasing the transparency of financial markets, and others. [ABSTRACT FROM AUTHOR]

Over the last decade, restructuring of railway systems has resulted in infrastructure management assets demanding increased performance and reliability while adopting budget limits and reduced time available for maintenance. In fact, the current routine and major programmed maintenances are such capital-intensive activities that transport operating companies always attempt to optimise the operational procedures and related assets' performances towards minimising the costs. Characteristically, the use of macro synthetic fibre reinforcement is proposed to improve the structural performances and service life of the sleeper component. Accordingly, this study addresses the economic feasibility of implementing macro synthetic fibre reinforced concrete (MSFRC) as an alternative material for railway sleeper applications. Through a life cycle costing (LCC) approach, the study evaluates the impact of different asset phases such as acquisition, operation and maintenance, and end-of-life towards a cost comparison of MSFRC with conventional sleeper materials. Hence, the most financially viable option is identified, although key economic parameters are varied to simulate future market values. [ABSTRACT FROM AUTHOR]

The rate of discounting future goods is a crucial factor in intertemporal trade‐offs, upon which depends not only individual well‐being but also that of our planet: How much privation now for a temperate future for our grandchildren? What is the best way to measure how the value of future goods decreases with its delay? The most accurate discount functions involve several covarying parameters, making interpretation equivocal. A universal and robust measure is the area under the discount curve, the AuC. The AuC of a hyperbolic discount function is a logarithmic function of the discount rate, k. The same integral also approximates the area under a hyperboloid function. A simple technique converts each datum into estimates of the discount rate, eliminating rogue data points in the process. These trimmed estimates are converted into areas and tested against data, where they succeed at predicting the AuC and its relation to log(k). [ABSTRACT FROM AUTHOR]

Learning algorithms can take a substantial amount of time to converge, thereby raising the need to understand the role of discounting in learning. In "Dynamic Pricing and Learning with Discounting," Z. Feng, M. Dawande, G. Janakiraman, and A. Qi examine the impact of discounting on learning by examining two classic dynamic-pricing and learning problems studied in Broder and Rusmevichientong (2012) and Keskin and Zeevi (2014). In both settings, the retailer initially does not know the parameters of the demand model. Given a discount factor, the retailer's objective is to determine a pricing policy to maximize the discounted revenue over a selling horizon. The authors establish lower bounds on the regret under any policy and propose new asymptotically optimal policies that take the discount factor into consideration. They numerically examine the regret under the proposed policies and the existing policies in the aforementioned two papers. In many practical settings, learning algorithms can take a substantial amount of time to converge, thereby raising the need to understand the role of discounting in learning. We illustrate the impact of discounting on the performance of learning algorithms by examining two classic and representative dynamic-pricing and learning problems studied in Broder and Rusmevichientong (BR) [Broder J, Rusmevichientong P (2012) Dynamic pricing under a general parametric choice model. Oper. Res. 60(4):965–980] and Keskin and Zeevi (KZ) [Keskin NB, Zeevi A (2014) Dynamic pricing with an unknown demand model: Asymptotically optimal semi-myopic policies. Oper. Res. 62(5):1142–1167]. In both settings, a seller sells a product with unlimited inventory over T periods. The seller initially does not know the parameters of the general choice model in BR (respectively, the linear demand curve in KZ). Given a discount factor ρ, the retailer's objective is to determine a pricing policy to maximize the expected discounted revenue over T periods. In both settings, we establish lower bounds on the regret under any policy and show limiting bounds of Ω (1 / (1 − ρ)) and Ω (T) when T → ∞ and ρ → 1 , respectively. In the model of BR with discounting, we propose an asymptotically tight learning policy and show that the regret under our policy as well that under the MLE-CYCLE policy in BR is O (1 / (1 − ρ)) (respectively, O (T)) when T → ∞ (respectively, ρ → 1). In the model of KZ with discounting, we present sufficient conditions for a learning policy to guarantee asymptotic optimality and show that the regret under any policy satisfying these conditions is O (log (1 / (1 − ρ)) 1 / (1 − ρ)) (respectively, O (log T T)) when T → ∞ (respectively, ρ → 1). We show that three different policies—namely, the two variants of the greedy iterated least squares policy in KZ and a different policy that we propose—achieve this upper bound on the regret. We numerically examine the behavior of the regret under our policies as well as those in BR and KZ in the presence of discounting. We also analyze a setting in which the discount factor per period is a function of the number of decision periods in the planning horizon. Funding: Z. Feng received support from the National Natural Science Foundation of China [Grant 72201256]. Supplemental Material: The online appendix is available at https://doi.org/10.1287/opre.2023.2477. [ABSTRACT FROM AUTHOR]

To what extent do we value future generations? It may seem from our behavior that we don't value future generations much at all, at least in relation to how much we value present generations. However, in his book Death and the Afterlife, Samuel Scheffler argues that we value the future even more than we value the present, even though this is not immediately apparent to us. If Scheffler's argument is sound, then it has important ramifications: It would give us a strong motivation to put more energy into abating environmental crises like climate change, and it supports at least a limited form of ethical longtermism. However, in this paper, I show that Scheffler's argument is fallacious. Scheffler claims that we do not regard the fact that we in the present generation will all die relatively soon as a catastrophe, but we do regard the non-existence of future generations as a catastrophe. But the particular scenario used by Scheffler to illustrate this point—the plot of the book The Children of Men—is one in which both the present generation will perish and there will be no future generations, and it is this conjunction that is catastrophic, thus giving no information about which is worse. I suggest other ways to compare our valuations of present and future generations, and recommend that philosophers who are interested in the moral psychology of how we value future generations ought to engage with social science, as it is an empirical issue. [ABSTRACT FROM AUTHOR]

Discounting future costs and benefits is a crucial yet contentious practice in the appraisal of long-term public projects with environmental consequences. The standard approach typically neglects that ecosystem services are not easily substitutable with market goods and often exhibit considerably lower growth rates. Theory has shown that we should either apply differentiated discount rates, such as a lower environmental discount rate, or account for increases in relative scarcity by uplifting environmental values. Some governments already integrate this into their guidance, but empirical evidence is scarce. We provide first comprehensive country-specific evidence, taking Germany as a case study. We estimate growth rates of 15 ecosystem services and the degree of limited substitutability based on a meta-analysis of 36 willingness to pay studies in Germany. We find that the relative price of ecosystem services has increased by more than four percent per year in recent decades. Heterogeneity analyses suggest that relative price changes are most substantial for regulating ecosystem services. Our findings underscore the importance of considering relative price adjustments in governmental project appraisal and environmental-economic accounting. [ABSTRACT FROM AUTHOR]

Lakes face threats from human activities like unsustainable development, population growth and industrial technologies. These challenges impact the ecosystem services of lakes. Research has assessed the monetary value of services from freshwater biomes annually. This article reviews these values, estimating lakes' global ecosystem services to be within the region of USD 1.3–5.1 trillion annually. Their natural asset value is estimated at USD 87–340 trillion, comparable to the monetary value of global real estate, assuming a relatively high social discount rate to account for future increased standards of living. Considering environmental degradation, future generations may experience a lower living standard. Using a 0.1% discount rate, recognizing potential harm and aligning with indigenous values raises the lakes' value to USD 1300–5100 trillion, which is at least equal to the global monetary value of wealth created. This valuation is shared by all as a collective asset, unlike the skewed distribution of created wealth. [ABSTRACT FROM AUTHOR]

We present a dynamic optimisation model that helps to explain the expansion and shutdown of activities at the Gallo-Roman site of La Graufesenque (near Millau, France) and that requires us to solve a non-linear differential equation concerning the exploitation of the forest. Once the resolution of this equation has shown the existence and uniqueness of a trajectory, we can explain most of the findings of archaeologists and historians to date. One parameter to which the dynamics are very sensitive is the discount rate, which represents a greater or lesser consideration for the future. Using a Monte Carlo method, we show that if this parameter is not constant — which is very likely over the century and a half of site activity — but varies according to a plausible (autoregressive) process, the trajectories obtained do not differ very much from the set of trajectories obtained for constant values of the parameter. Ultimately, taking the long term into account in decision making delays the onset of a sudden decline, but does not prevent it. Any resource exploitation in our contemporary world that could be modelled by the same equations would suffer the same fate. [ABSTRACT FROM AUTHOR]

In experimental work, researchers have found that policymakers discount the opinions of constituents with whom they disagree. We build on these results with a national sample of local policymakers in the United States, exploring whether communicators can prevent policymakers from discounting their opinions by providing evidence of their own knowledge about a topic. We find that policymakers discount the opinions of hypothetical constituents with whom they disagree, but there is evidence that providing unambiguous evidence about a letter-writer's positive traits can reduce this discounting. We conclude with a discussion of implications for theory as well as practical implications for communicating with policymakers. [ABSTRACT FROM AUTHOR]

This paper is devoted to a study of infinite horizon optimal control problems with time discounting and time averaging criteria in discrete time. It is known that these problems are related to certain infinite-dimensional linear programming problems, but compactness of the state constraint is a common assumption imposed in analysis of these LP problems. In this paper, we consider an unbounded state constraint and use Alexandroff compactification to carry out the analysis. We also establish asymptotic relationships between the optimal values of problems with time discounting and long-run average criteria. [ABSTRACT FROM AUTHOR]

In recent years, several high-profile incidents have spurred research into games of timing. A framework emanating from the FlipIt model features two covert agents competing to control a single contested resource. In its basic form, the resource exists forever while generating value at a constant rate. As this research area evolves, attempts to introduce more economically realistic models have led to the application of various forms of economic discounting to the contested resource. This paper investigates the application of a two-parameter economic discounting method, called generalized hyperbolic discounting, and characterizes the game's Nash equilibrium conditions. We prove that for agents discounting such that accumulated value generated by the resource diverges, equilibrium conditions are identical to those of non-discounting agents. The methodology presented in this paper generalizes the findings of several other studies and may be of independent interest when applying economic discounting to other models. [ABSTRACT FROM AUTHOR]

We present the first systematic review of the literature on farmer time preference measurements across Europe and North America. We synthesize methodological developments, summarize the empirical findings, and discuss challenges and potential areas for further research. The average reported discount rate of the farmers in Europe and North America is 23% per annum. Farmer time preferences are, however, highly heterogeneous within and across studies. Moreover, we identify methodological challenges and knowledge gaps to be addressed in future research. We draw conclusions for policymakers and researchers. [ABSTRACT FROM AUTHOR]

At least since the Age of Enlightenment, good health has been a tenet for society. Healthy societies could learn better, work harder, improve their wealth, and live longer. Today societies focus on life expectancy, as we value long and healthy lives. As illustrated by the provision of COVID-19 vaccines first for the elderly, societies value life-saving actions. Paradoxically, health economic assessments conventionally devalue long-lasting health through the practice of discounting health benefits along with costs. However, health, with its intrinsic and instrumental characteristics, is not synonymous with money cash, a tradeable asset that devalues with time. If improving healthy life expectancy is a societal ambition, it seems counter-intuitive to value future health less as a result of an artificial mathematical construct when evaluating economically new medical interventions. In this paper, we investigate the application of discounting health in healthcare and consider paradoxical findings, especially in relation to disease prevention with vaccination. We argue that there is no economically sustainable argument to discount health gains, except for the benefit of the payer with a goal of spending less on life-saving products. If that is the objective for discounting health, there are other means to achieve the same goal in a more transparent and simpler way. From the long-term perspective of healthcare development, not discounting health gains would encourage research that values long-term effects. This in turn has the potential to benefit the investor, the payer, and the patient/consumer, improving the situation from multiple perspectives. [ABSTRACT FROM AUTHOR]

Absrtact: The intensification of investment activity in the real sector of the economy and its effectiveness remain one of the main problems in Russia. Despite the constant increase in the share of borrowed funds in recent years, the main source of investment remains the organizations' own funds. Own funds for the implementation of most investment projects, even large enterprises clearly do not have enough. Innovation management is based on determining the effectiveness of innovation activities in order to improve it. The article suggests the main stages of the approach to solving the problems of assessing the economic efficiency of innovative projects, discusses methodological principles in the analysis of innovation activity in modern conditions. In many ways, the results of the efficiency of enterprises depend on these factors. [ABSTRACT FROM AUTHOR]

The objective of the study is to justify the prohibition of discounting deferred taxes by harmonising their essence with the concept of fair value. The work is theoretical in nature, standard scientific methods have been used, including the collection of theoretical information, formalisation, as well as analysis, synthesis, observation, and comparison. This article summarizes the results of research in the field of deferred tax discounting over the past 60 years and attempts to reconcile the essence of it with the concepts of fair value. The issues of deferred tax discounting have long been the subject of scientific research and still remain unresolved. In the second half of the twentieth century, the key problem was the choice of an acceptable discount rate against the background of lack of understanding of the essence of deferred taxes. Subsequently, the vector of research has changed towards determining the economic value of deferred taxes without reference to the theory of deferred taxation. The author proved that under the concept of fair value, deferred tax liabilities (DTL) do not need to be discounted because the assessment takes into account the minimum economic benefits generated by the asset as of the reporting date and under prevailing market conditions. It is shown that the balance sheet reflects the theoretical relationship between deferred tax liabilities and current income tax liabilities. The conclusion is made about the modifiability of deferred tax liabilities into current liabilities in terms of static accounting ideology while observing the going concern principle. The problems of applying valuation at fair value measurement that does not take into account the current tax position of the organization; as well as the place of deferred taxes in the capital accounting equation are raised. The results of the research have theoretical significance and can be used within the framework of improvement of the accounting legislation.

ABSTRACTAt least since the Age of Enlightenment, good health has been a tenet for society. Healthy societies could learn better, work harder, improve their wealth, and live longer. Today societies focus on life expectancy, as we value long and healthy lives. As illustrated by the provision of COVID-19 vaccines first for the elderly, societies value life-saving actions. Paradoxically, health economic assessments conventionally devalue long-lasting health through the practice of discounting health benefits along with costs. However, health, with its intrinsic and instrumental characteristics, is not synonymous with money cash, a tradeable asset that devalues with time. If improving healthy life expectancy is a societal ambition, it seems counter-intuitive to value future health less as a result of an artificial mathematical construct when evaluating economically new medical interventions. In this paper, we investigate the application of discounting health in healthcare and consider paradoxical findings, especially in relation to disease prevention with vaccination. We argue that there is no economically sustainable argument to discount health gains, except for the benefit of the payer with a goal of spending less on life-saving products. If that is the objective for discounting health, there are other means to achieve the same goal in a more transparent and simpler way. From the long-term perspective of healthcare development, not discounting health gains would encourage research that values long-term effects. This in turn has the potential to benefit the investor, the payer, and the patient/consumer, improving the situation from multiple perspectives.

Impairments in effort-cost decision-making have been consistently observed in people with schizophrenia (SZ) and may be an important mechanism of negative symptoms. However, the processes that give rise to impairments in effort-cost decision-making are unclear, leading to limited progress in identifying the most relevant treatment targets. Drawing from cognitive models of negative symptoms and goal-directed behavior, this study aimed to examine how and under what type of task conditions defeatist performance beliefs contribute to these decision-making processes. Outpatients with SZ (n = 30) and healthy controls (CN; n = 28) completed a cognitive effort allocation task, the Cognitive Effort-Discounting (COGED) task, which assesses participants' willingness to exert cognitive effort for monetary rewards based on parametrically varied working memory demands (completing N-back levels). Results showed that although participants with SZ demonstrated reduced willingness to work for rewards across N-back levels compared to CN participants, they showed less choice modulation across different N-back conditions. However, among SZ participants with greater defeatist performance beliefs, there was a reduced willingness to choose the high effort option at higher N-back levels (N-back levels 3, 4, and 5 versus 2-back). Results suggest that compared to CN, the SZ group's subjective willingness to expend effort largely did not dynamically adjust as cognitive load increased. However, defeatist beliefs may undermine willingness to expend cognitive effort, especially when cognitive task demands are high. These beliefs may be a viable treatment target to improve effort-cost decision-making impairments in people with SZ. [ABSTRACT FROM AUTHOR]

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Ecosystems provide humanity with a wide variety and high economic value-added services, from biomass structuring to genetic information, pollutants' decomposition, water purification and climate regulation. The foundation of ecosystem services is the Eltonian Pyramid, where via prey–predator relationships, energy metabolism and biomass building take place. In the context of existing ecosystem services classification and valuation methods (e.g., CICES, MEA, TEEB), financial investments in ecosystem services essentially address the conservation of trophic pyramids. Our work's main target is to investigate how trophic pyramids' dynamics (stability or instability) impact the long-run discounting of financial investments on ecosystem services' value. Specifically, a trophic pyramid with highly fluctuating populations generates higher risks for the production of ecosystem services, hence for ecological finance instruments coupled to them, due to higher temporal uncertainty or information entropy that should be incorporated into their discount rates. As this uncertainty affects negatively the net present value (NPV) of financial capital on ecosystem services, we argue that the minimization of biomass fluctuations in trophic pyramids via population control should be among the priorities of ecosystem management practices. To substantiate our hypothesis, we construct a logistic predation model, which is consistent with the Eltonian Pyramid's ecological energetics. As the logistic predator model's parameters determine the tropic pyramid's dynamics and uncertainty, we develop an adjusted Shannon entropy index (H(N)ADJ) to measure this effect as part of the discount rate. Indicatively, we perform a Monte Carlo simulation of a pyramid with intrinsic growth parameter values that yield oscillating population sizes. Finally, we discuss, from an ecological energetics standpoint, issues of competition and diversity in trophic pyramids, as special dimensions and extensions of our analytical framework. [ABSTRACT FROM AUTHOR]

We study list price competition when firms can individually target consumer discounts (at a cost) afterwards, and we address recent privacy regulation (like the GDPR) allowing consumers to choose whether to opt-in to targeting. Targeted consumers receive poaching and retention discount offers. Equilibrium discount offers are in mixed strategies, but only two firms vie for each contested consumer and final profits on them are Bertrand-like. When targeting is unrestricted, firm list pricing resembles monopoly. For plausible demand conditions and if targeting costs are not too low, firms and consumers are worse off with unrestricted targeting than banning it. However, targeting induces higher (lower) list prices if demand is convex (concave), and either side of the market can benefit if list prices shift enough in its favour. Given the choice, consumers opt in only when expected discounts exceed privacy costs. Under empirically plausible conditions, opt-in choice makes all consumers better off. [ABSTRACT FROM AUTHOR]

Steep delay and shallow probability discounting are associated with myriad problem behaviors; thus, it is important to understand factors that influence the degree of discounting. The present study evaluated the effects of economic context and reward amount on delay and probability discounting. Two hundred thirteen undergraduate psychology students completed four delay‐ or probability‐discounting tasks. Participants were exposed to hypothetical narratives involving four bank amounts ($750, $12,000, $125,000, and $2,000,000). The delayed/probabilistic amount was $3,000 for the two smaller bank amounts and $500,000 for the two larger bank amounts. The discounting tasks included five delays to, or probabilities of, receipt of the larger amount. The area under the empirical discounting function was calculated for each participant. Participants discounted delayed and uncertain outcomes more when the bank amount was smaller than the outcome (i.e., the economic context was low). Participants discounted the delayed larger amounts less than delayed smaller amounts, even when the relative economic context was the same. In contrast, probability discounting did not differ across magnitudes, which suggests that economic context may attenuate the magnitude effect in probability discounting. The results further highlight the importance of considering the economic context in delay and probability discounting. [ABSTRACT FROM AUTHOR]

This review sought to synthesize the literature on the reliability and validity of behavioral‐economic measures of demand and discounting in human research, introduce behavioral‐economic research methodologies for studying addictive behaviors, discuss gaps in the current literature, and review areas for future research. A total of 34 studies was included in this review. The discounting literature showed similar responding regardless of whether hypothetical or actual outcomes were used, though people tended to discount the outcome presented first more steeply, suggesting order effects. Although delay‐discounting measures seem to show temporal stability, exceptions were found for probability‐ and experiential‐discounting tasks. The demand literature also demonstrated similar responding regardless of outcome type; however, some demand indices showed exceptions. Randomized price sequences tended to show modest increases in Omax and α and modestly higher rates of inconsistent or nonsystematic responses compared with sequential price sequences. Demand indices generally showed temporal stability, although the stability was weaker the larger the time interval between test sessions. Future studies would benefit by examining addictive commodities beyond alcohol, nicotine, and money; examining temporal stability over longer time intervals; using larger delays in discounting tasks; and using larger sample sizes. [ABSTRACT FROM AUTHOR]

BACKGROUND: The evidence-based Therapeutic Workplace (TWP) is a promising employment-based treatment where access to work is contingent on objective evidence of abstinence from drugs. TWP is sometimes criticized for requiring individuals who use drugs to voluntarily enroll in a program requiring urine drug testing. OBJECTIVE: This experiment was conducted to assess whether urine drug testing as a condition of employment decreases the value of employment opportunities and to what degree. METHODS: Participants were unemployed, DSM-IV opioid-dependent, and enrolled in TWP. Participants completed discounting tasks assessing preference for a hypothetical job paying a constant wage that did not require urine drug testing and a job that paid a variable wage but required drug testing. The primary outcome was 'job value' operationalized as percentage wage difference to accept a job requiring urine drug testing. RESULTS: Percent wage difference to accept a job that required urine testing was analyzed using GEE. Results revealed a significant main effect of recent drug use (χ2(1) = 10.07, p < 0.01). CONCLUSION: Most participants were willing to accept a urine drug-testing job across wages similar non-drug testing jobs. Participants reporting recent cocaine or heroin use were less likely to choose urine drug-testing employment. [ABSTRACT FROM AUTHOR]