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Companies need to consider a social discount rate

The second discount rate is known as the social discount rate. It is based on judgments about the collective value that society attaches to a policy. Proponents argue that the social discount rate is preferred because it broadens the preferences considered. In some cases, the social discount rate will factor in the costs and benefits of a program to future generations. Opponents point to the irrationality and difficulty to measure intangible elements like the cost of pollution, or satisfaction, or other factors.

This may boil down to a left brain/right brain dilemma. Some of you are business managers or business-oriented people who usually subscribe to a quantitative focus. Others of you follow a qualitative (not quality) focus and believe that everything can be measured.

Where do you stand on this issue of a social discount rate? Briefly explain why.

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First the definitions here are incorrect. Quanititative are measurable by figures and verifiable data, qualitiative it more about the personal input or perceptions (qualitative research is observational, quantitative is statistical). I believe that social discount ...

Solution Summary

An explanation of the differences in qualitative and quantitative research questions. How these can be applied to the importance of social discount rate, what it is, how it affects companies.