I’d guess that any delay that gives the other party a chance to back out would be sufficient. When determining the expected utility of each offer, there should be a term for the probability of the deal actually going through. That’s very close to 1 when you take the $100 now and less if you have to wait a day for $120, which might tip the balance toward the $100. But the probabilities are nearly identical for 30 and 31 days, so $120 is the better choice there.
Good point. It might be interesting to try to find a money delta (ie, $100 vs. $200 or whatever) where someone would take the earlier one at 30 vs. 31 days, but the larger one at 90 vs. 91 days. But I’m not sure how much that would prove.
I’d guess that any delay that gives the other party a chance to back out would be sufficient. When determining the expected utility of each offer, there should be a term for the probability of the deal actually going through. That’s very close to 1 when you take the $100 now and less if you have to wait a day for $120, which might tip the balance toward the $100. But the probabilities are nearly identical for 30 and 31 days, so $120 is the better choice there.
Good point. It might be interesting to try to find a money delta (ie, $100 vs. $200 or whatever) where someone would take the earlier one at 30 vs. 31 days, but the larger one at 90 vs. 91 days. But I’m not sure how much that would prove.