TITLE:
A Probabilistic Theory for Intertemporal Indifference
AUTHORS:
Mehraj Bin Yasaar Parouty, Maarten Jacobus Postma
KEYWORDS:
Intertemporal Indifference, Commodity
JOURNAL NAME:
Theoretical Economics Letters,
Vol.4 No.6,
June
16,
2014
ABSTRACT:
This paper
provides a closed form distribution for the probability of intertemporal
indifference between a certain quantity of a commodity now, Q(0) = q0 , and some future quantity Q(T) = q at time t = T assuming adiscount weight, w(T) ∈ (0,1).