Discounting results in unresolved problems. The four levels of discounting are: Existence, Significance, Change possibilities and Personal abilities.

1. Levels of discounting

2. Prepared By
Manu Melwin Joy
Research Scholar
School of Management Studies
CUSAT, Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com
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3. Discount Matrix
• Discounting results in
unresolved problems.
• Thus, if we can devise a
systematic way of identifying
the nature and intensity of
discounting, we will have a
powerful tool for problem
solving.
• Such a tool is called discount
matrix.

4. Discount Matrix
• Discount matrix was developed
by Ken Mellor and Eric Sigmund.
• The discount matrix starts from
the idea that we classify
discounts according to three
different criteria.
• Area.
• Type.
• Level.

5. Levels of discounting
• The four levels of
discounting are:
• Existence.
• Significance.
• Change
possibilities.
• Personal abilities

6. Discounting- Existence
• In the example, I was
discounting the
existence of my own
options to solve the
problem.
• I didn’t even consider
the possibility of, for
example, walking over
and speaking to the
waiter instead of
gesturing to him.

7. Discounting- Significance
• If I had been discounting the
significance of my options, I
might have said to my friend:
“ I suppose I could go over
and ask him.
• But I bet asking him wouldn’t
make a difference.
• Here, I did have realized
there was something
different I could do, but
blanked out the possibility
that his action could have any
effect.

8. Discounting- Change possibilities
Discounting my options at
the level of change
possibilities, I might have
said: “ Of course, I could
walk across and collar the
fellow. But people just
don’t do that in
restaurants”.

9. Discounting- Change possibilities
In this case, I would have
let myself realize that the
option existed and that it
might have results, while
ignoring the possibility that
anyone could actually put
the option into practice.

10. Discounting- Personal Abilities
• Here I am aware the
options exists and could
bring results.
• I realize that some
people in the world
might well use that
option.
• But I dismiss my own
ability to do so.

11. Thank you

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