Valuating payoff streams under unequal discount factors




Hannu Salonen, Hannu Vartiainen

PublisherELSEVIER SCIENCE SA

2008

Economics Letters

ECONOMICS LETTERS

ECON LETT

99

3

595

598

4

0165-1765

DOIhttps://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.



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