2020/12/19 by Camila S. Agostino Peter M. E. Claessens, Claessens, Camila S. Agostino Peter M. E., Fuat Balcı +2
Decision Sciences · Economics, Econometrics and Finance · Neuroscience · #Complex Systems and Time Series Analysis #Decision-Making and Behavioral Economics #FOS: Economics and business #Neural and Behavioral Psychology Studies #Theoretical Economics (econ.TH)
paper · pdf · doi:10.48550/arxiv.2012.10735
openalex publication_date 2020/12/19 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
The role of specific cognitive processes in deviations from constant\ndiscounting in intertemporal choice is not well understood. We evaluated\ndecreased impatience in intertemporal choice tasks independent of discounting\nrate and non-linearity in long-scale time representation; nonlinear time\nrepresentation was expected to explain inconsistencies in discounting rate.\nParticipants performed temporal magnitude estimation and intertemporal choice\ntasks. Psychophysical functions for time intervals were estimated by fitting\nlinear and power functions, while discounting functions were estimated by\nfitting exponential and hyperbolic functions. The temporal magnitude estimates\nof 65% of the participants were better fit with power functions (mostly\ncompression). 63% of the participants had intertemporal choice patterns\ncorresponding best to hyperbolic functions. Even when the perceptual bias in\nthe temporal magnitude estimations was compensated in the discounting rate\ncomputation, the data of 8 out of 14 participants continued exhibiting temporal\ninconsistency. The results suggest that temporal inconsistency in discounting\nrate can be explained to different degrees by the bias in temporal\nrepresentations. Non-linearity in temporal representation and discounting rate\nshould be evaluated on an individual basis. Keywords: Intertemporal choice,\ntemporal magnitude, model comparison, impatience, time inconsistency\n