Coordinating activities among members of a distribution channel has been a subject of great attention in the past two decades. Among various methods to coordinate independent channel members, a number of studies in the literature suggest quantity discount as a mechanism to achieve incentive-compatible coordination between a manufacturer and his retailer. The rationale behind this coordination m...

Consider a distribution system consisting of a set of retailers facing a single-period price-dependent demand of a single product. By taking advantage of the risk-pooling effect and the quantity/volume discount provided by suppliers or thirdparty carriers, the retailers may place joint orders and keep inventory at central warehouses before demand realization, and allocate inventory among themse...

It has been suggested that the long-term discount rate for environmental goods should decrease at longer delays. One justification for this suggestion is that human judgments support it. This article presents an experiment showing that judgments concerning discount rates are internally inconsistent. These results point to potential problems with the use of judgments referenda for determining di...

To justify substantial carbon emission reductions, recent literature on cost-benefit analysis of climate change suggests discounting environmental quality at a lower discount rate than the standard consumption discount rate. Recent literature also shows that a theoretical foundation for such a lower environmental discount rate requires rising willingness-to-pay for environmental quality (WTP). ...

A discount may be defined by the location in which, and frame by which, it is communicated. Discount framing, particularly the differences etween cents-off and percentage-off discounts, has been widely studied. Discount location (e.g., proximate to or distal from regular price info) has eceived considerably less attention. We employ the proximity-compatibility principle and tenets of human memo...

Discount rates are often used in cost-benefit analysis. Whenever costs and benefits for a household or individual are spread over time, it is essential that one calculate present-value equivalents in order to undertake meaningful comparisons. In most cases welfare analysts use market rates as the basis for these present-value calculations. Sensitivity analysis often consists of varying the scal...

When making decisions that involve tradeoffs between the quality and timing of desirable outcomes, people consistently discount the value of future outcomes. A puzzling finding regarding such decisions is the extremely high rate at which people discount future monetary outcomes. Most economists would argue that decision-makers should only turn down rates of return that are lower than those avai...

We explore intertemporal decision making to test the extent to which elicited discount rates and a self-reported scale of impatience measure the same behavioral characteristic. We conduct experiments in which we elicit discount rates using monetary rewards and a self-reported measure of impatience (the Barratt Impulsiveness Scale, BIS-11). Although researchers have utilized these measures to in...