tag:blogger.com,1999:blog-5052387.post89560783..comments2021-01-19T06:36:50.628-08:00Comments on Blobs in Games: Economic modelsAmithttp://www.blogger.com/profile/12159325271882018300noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-5052387.post-85688617501750171782020-12-09T10:22:30.863-08:002020-12-09T10:22:30.863-08:00I'm sure you've found a solution to this a...I'm sure you've found a solution to this already given this is almost 2 decades ago, but one way to work with future values is to use discounting.<br />The technique is used in finance to work out the value of things going into the future.<br />In the example from the post the way you would compare two farms yielding a unit after 6 months and one yielding a unit after 3 months would be as follows.<br />Take a time based discounting factor, in this case well use 3% per month.<br />What that means is that £100 today is worth the same to the agent as £103 in a months time. (3% would be more realisticly used over the course of a year but the point remains)<br /><br />We can then calculate the value of the two scenarios as follows assuming a constant price for one unit of yield:<br />For a single farm the yield is 1/(1.03^3) + 1/(1.03^6) = 1.75<br />for the two farms the yield is 2/(1.03^6) = 1.67<br /><br />In that way you can clearly represent the benefit of the more frequently yielding farm.jhylandshttps://www.blogger.com/profile/11277913102570933921noreply@blogger.com