Accession Number : AD0756189

Title :   A Utility Theory Approach to Preferences for Money Over Time.

Descriptive Note : Technical rept.,

Corporate Author : MASSACHUSETTS INST OF TECH CAMBRIDGE OPERATIONS RESEARCH CENTER

Personal Author(s) : Bell,David E.

Report Date : JUN 1972

Pagination or Media Count : 73

Abstract : When a decision maker considers possible returns from a business project or investment, he often faces the problem that these returns are not all received at the same time, and thus he must make some adjustments to take account of his time preference for money. The report uses utility theory to examine the problem of evaluating time streams of income both in circumstances of certainty and uncertainty with regard to the exact value and timing of the incomes. Three different approaches to this problem are examined and contrasted. (Author Modified Abstract)

Descriptors :   (*ECONOMICS, DECISION MAKING), MONEY, MANAGEMENT ENGINEERING, TIME, MATHEMATICAL MODELS, UNCERTAINTY

Subject Categories : Administration and Management

Distribution Statement : APPROVED FOR PUBLIC RELEASE