Description
Invert a hyperbolic equivalent-delay relation.
Decision models distinguish monetary payoffs, probabilities, model values and subjective equivalents. Discounting, probability weighting and reference-dependent utility terms depend on supplied parameters and cannot by themselves establish actual preferences or an appropriate allocation.
Invert a hyperbolic equivalent-delay relation.
When to use this tool
Use Hyperbolic Discount Equivalent Delay when evaluating the stated decision-model, lottery or discount contribution.
How to use the tool and how it works
- Enter futureAmount, presentEquivalent, rate. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read delay. Use the output convention below.
Invert a hyperbolic equivalent-delay relation. Require presentEquivalent > 0, futureAmount >= presentEquivalent and rate > 0; delay = (future/present-1)/rate.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| futureAmount | Future Amount | Required. Finite number. |
| presentEquivalent | Present Equivalent | Required. Finite number; strictly above 0. |
| rate | Rate | Required. Finite number; strictly above 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| delay | Delay | Required. Finite number. |
{
"input": {
"futureAmount": 120,
"presentEquivalent": 100,
"rate": 0.01
},
"output": {
"delay": 19.999999999999996
}
}Limitations and assumptions
- Rate units determine delay units; no actual discount rate, preference or appropriate financial timing is inferred.
- 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
Fit and validate an appropriate complete decision model against relevant observations; distinguish model scores from money and assess actual financial choices separately.
References
Similar or alternative tools
- Delay Unit Framing Offset
Convert a delay to base units and compare with a reference.
- Quasi Hyperbolic Present Premium Term
Return quasi-hyperbolic discounted reward and present-bias difference.