Beta-delta discounting The vector of weights fa,b,c,...is called a discounting function. Discounting function:a vector of weights that indicates how much an individual values utility in present and future periods. In theory,one's discounting function could take any shape,but in general,economists who study time inconsistency assume that discounting functions are monotonically decreasing and reasonably approximated with just two parameters. Bhattacharya,Hyde and Tu-HealthEconomicsBhattacharya, Hyde and Tu – Health Economics  The vector of weights {a, b, c, . . . } is called a discounting function.  Discounting function: a vector of weights that indicates how much an individual values utility in present and future periods.  In theory, one’s discounting function could take any shape, but in general, economists who study time inconsistency assume that discounting functions are monotonically decreasing and reasonably approximated with just two parameters. Beta-delta discounting