File:Hyperbolic vs. exponential discount rates.svg
Summary
| Description |
English: A comparison of the time-varying discount rate of hyperbolic discounting with the constant rate of exponential discounting. |
| Source | Own work |
| Author | Moxfyre |
| Other versions | Hyperbolic vs. exponential discount factors.svg |
| SVG development | |
| Source code | Python codeimport pylab as P
import numpy as N
P.rcParams['svg.embed_char_paths'] = False
x = N.linspace(0, 10, 1000)
hyp_df = 1/(1+x)
exp_df = N.exp(-x)
P.figure(1)
P.plot(x, hyp_df, "-", label="Hyperbolic discounting")
P.plot(x, exp_df, "-", label="Exponential discounting")
P.ylim(-0.05, 1.05)
P.legend(loc="upper right")
P.xlabel("Time from present")
P.ylabel("Discount factor")
P.savefig("Hyperbolic vs. exponential discount factors.svg")
P.figure(2)
#P.twinx()
P.plot(x, N.exp(P.log(hyp_df)/x), "-", label="Hyperbolic discounting")
P.plot(x, N.exp(P.log(exp_df)/x), "-", label="Exponential discounting")
P.ylim(-0.05, 1.05)
P.legend(loc="upper right")
P.xlabel("Time (from present)")
P.ylabel("Discount rate")
P.savefig("Hyperbolic vs. exponential discount rates.svg")
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Permission is granted to copy, distribute and/or modify this document under the terms of the GNU Free Documentation License, Version 1.2 or any later version published by the Free Software Foundation; with no Invariant Sections, no Front-Cover Texts, and no Back-Cover Texts. A copy of the license is included in the section entitled GNU Free Documentation License. |
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