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Related Experiment Video

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The Joint Effect of Social Comparison and Social Distance on Evaluation of Intertemporal Choice Outcomes in Event-related Potential Studies

The Joint Effect of Social Comparison and Social Distance on Evaluation of Intertemporal Choice Outcomes in Event-related Potential Studies

Published on: August 25, 2023

Psychological connectedness and intertemporal choice.

Daniel M Bartels¹, Lance J Rips

¹Center for Decision Research, University of Chicago, USA. bartels@uchicago.edu

Journal of Experimental Psychology. General

|February 4, 2010

Summary

This summary is machine-generated.

People value immediate rewards more due to psychological connection to their near future selves. Greater psychological connectedness reduces discounting of future benefits, influencing intertemporal choices.

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Area of Science:

Psychology
Behavioral Economics
Decision Science

Background:

Individuals consistently devalue future rewards compared to immediate ones.
This temporal discounting is influenced by perceived psychological distance from future selves.

Purpose of the Study:

To investigate the role of psychological connectedness in intertemporal choice.
To determine if the perceived link between present and future selves affects how people value future goods and costs.

Main Methods:

Studies 1 and 2: Assessed the correlation between rated psychological connectedness and discounting of future monetary/nonmonetary benefits.
Studies 3-5: Examined decision-making for hypothetical characters experiencing life-changing events that alter psychological connectedness.

Main Results:

Higher psychological connectedness correlated with less discounting of future benefits.
Participants preferred benefits to occur before significant life changes (weakening connectedness) and costs after such changes.

Conclusions:

Psychological connectedness is a key factor in intertemporal decision-making.
The perceived link to one's future self significantly shapes preferences for the timing of rewards and costs.