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CARD 4 OF 4
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A model that reduces the present value of a future outcome by the same proportional factor for each equal unit of delay.
noun phrase
Reveal word and examples
exponential discounting
The graph for exponential discounting applies a constant proportional reduction over equal intervals.
Dictionary practice example.
In her class's exponential discounting model, the value assigned to a future reward fell by the same proportional factor for each additional equal interval of waiting.
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