Description
Raise a supplied per-period discount factor to a delay.
Behavioral economic tasks use explicit payoff units, reference values, time periods and supplied utility or discount conventions. A decision weight need not be a probability, one branch term is not a full expectation, and a nominal cost difference does not establish perceived switching difficulty or an actual preference.
Raise a supplied per-period discount factor to a delay.
When to use this tool
Use Delay Choice Present Value Factor when you already have delayPeriods, suppliedDiscountFactorPerPeriod and need to raise a supplied per-period discount factor to a delay.
How to use the tool and how it works
- Enter delayPeriods, suppliedDiscountFactorPerPeriod. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read presentValueFactor. Use the output convention below.
Require delayPeriods>=0 and suppliedDiscountFactorPerPeriod>0; return factor^delay.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| delayPeriods | Delay Periods | Required. Finite number; minimum 0. |
| suppliedDiscountFactorPerPeriod | Positive multiplier, not an interest rate; values above one are accepted. | Required. Finite number; strictly above 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| presentValueFactor | Present Value Factor | Required. Finite number. |
{
"input": {
"delayPeriods": 2,
"suppliedDiscountFactorPerPeriod": 0.5
},
"output": {
"presentValueFactor": 0.25
}
}Limitations and assumptions
- Factors above one and fractional delays are allowed. This accepts a factor rather than an interest rate, estimates no preference and may underflow to zero.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Review the full task design, incentive and payoff definitions, participant records and statistical analysis. Estimate behavioral models from appropriate data when local supplied-value arithmetic cannot establish preferences or causal effects.
References
Similar or alternative tools
- Reward Delay Unit Crosswalk
Convert a supplied reward delay between fixed hours, days and weeks.
- Machinery Residual Value Discount
Discount a supplied future machinery residual value.