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discount
(redirected from Discount factor)

   Also found in: Dictionary/thesaurus, Medical, Legal, Financial, Acronyms, Encyclopedia, Wikipedia 0.01 sec.

discount

Reduction in the price of an item. For example, goods are discounted in price during a sale. Discounting is a form of competition used by companies to increase sales and market share. Discounts can also be given for buying in bulk, and this then becomes a source of economies of scale for the buying organization.

The term is also used to describe the equivalent present value of a sum payable or receivable in the future; for example, if the rate of interest is 5% and the sum of £105 is payable in a year's time, then its discounted present value is £100.



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In this text, Cheng (Chinese Academy of Science, China) and Tong (London School of Economics, UK) develop a new structural theory to evaluate asset pricing models which puts the stochastic discount factor (SDF) pricing model of recent years firmly on a mathematical foundation.
Section V presents discount factor tables and describes a supporting document for one of the standards.
Since applications with unequal discount factors [4, 5] are relatively rare and it is unclear how to solve them with model-free methods, we will only consider MDPs with several criteria each based on its own reward function, but using a common discount factor [gamma].
 
 
 
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