AI engineering glossary · Reinforcement learning

What is discount factor?

Discount factor (also called Gamma): A number between 0 and 1 that reduces the weight of scores received further in the future. A value near 0 makes the learner short-sighted, and a value near 1 makes it patient. It also keeps totals finite in never-ending problems.

Level: beginnerTopic: Reinforcement learning

Discount factor: an example

With gamma = 0.99, a reward of 100 that arrives 50 steps later counts for about 100 * 0.99^50 = 60.5 today; with gamma = 0.9 it counts for only 0.5.

Related terms

More Reinforcement learning terms

Where you learn it

Discount factor is part of the AI Engineering Program, which teaches it with notes, a hands-on lab and an exam. The first lesson is free.

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