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Intertemporal choice--toward an integrative framework.

Gregory S Berns1, David Laibson, George Loewenstein

  • 1Department of Psychiatry & Behavioral Sciences, Emory University School of Medicine, Atlanta, GA 30322, USA. gberns@emory.edu

Trends in Cognitive Sciences
|November 6, 2007
PubMed
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Understanding intertemporal choices reveals how people make decisions over time. Brain mechanisms like representation, anticipation, and self-control influence these complex decisions.

Area of Science:

  • Decision-making science
  • Neuroeconomics
  • Behavioral economics

Background:

  • Intertemporal choices involve consequences over time, impacting personal decisions and policy debates.
  • Traditional models assumed constant discounting of delayed rewards.
  • Recent advances reveal a more complex understanding of intertemporal decision-making.

Purpose of the Study:

  • To review and integrate recent theoretical and empirical advances in understanding intertemporal choices.
  • To highlight key brain mechanisms involved in intertemporal decision-making.

Main Methods:

  • Literature review integrating economic, psychological, and neuroscience perspectives.
  • Analysis of brain mechanisms underlying intertemporal decision-making.

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Main Results:

  • Intertemporal decision-making is more complex than previously assumed.
  • Three key brain mechanisms—representation, anticipation, and self-control—are involved.
  • These mechanisms can sometimes compete in guiding choices.

Conclusions:

  • A nuanced understanding of intertemporal choices requires considering multiple brain mechanisms.
  • Future research should further explore the interplay of representation, anticipation, and self-control.
  • This integrated view informs personal choices and policy on long-term challenges.