Valuating payoff streams under unequal discount factors
: Hannu Salonen, Hannu Vartiainen
Publisher: ELSEVIER SCIENCE SA
: 2008
: Economics Letters
: ECONOMICS LETTERS
: ECON LETT
: 99
: 3
: 595
: 598
: 4
: 0165-1765
DOI: https://doi.org/10.1016/j.econlet.2007.10.007
We study repeated prize allocation when the discount factors of the agents are unequal. The feasible set of payoffs behaves badly: the Pareto frontier is everywhere discontinuous and there is an open subset of (high) discount factors under which the feasible set is totally disconnected. (c) 2008 Published by Elsevier B. V.