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Updated: May 14, 2026
07:47
Measuring Delay Discounting in Humans Using an Adjusting Amount Task
Published on: January 9, 2016
Discounting of delayed rewards is not hyperbolic
1Stony Brook University, Stony Brook, NY 11794, USA. christian.luhmann@stonybrook.edu
Journal of Experimental Psychology. Learning, Memory, and Cognition
|January 30, 2013
Summary
Decision-makers often prefer immediate rewards, a behavior called delay discounting. This study finds that hyperbolic discounting, the common explanation, does not accurately predict these preference reversals.
Area of Science:
- Behavioral Economics
- Decision Science
- Cognitive Psychology
Background:
- Delay discounting describes the reduced value of rewards due to delay.
- Dynamic inconsistency, where preferences change over time, violates standard economic theory.
- Hyperbolic discounting is the prevailing explanation for these preference reversals.
Purpose of the Study:
- To empirically test the consistency of hyperbolic discounting with observed choice behavior.
- To evaluate whether hyperbolic discounting accurately explains dynamic inconsistency in decision-making.
Main Methods:
- The study applied rigorous empirical standards to hyperbolic discounting, similar to those used for exponential discounting.
- Choice behavior data was analyzed to assess consistency with hyperbolic discounting predictions.
Main Results:
- Observed choice behavior is not consistent with the predictions of hyperbolic discounting.
- Preference reversals, a key aspect of delay discounting, are not accurately explained by hyperbolic models.
Conclusions:
- The findings challenge the widespread acceptance of hyperbolic discounting as the primary explanation for delay discounting and preference reversals.
- Alternative models may be needed to fully understand decision-making under delayed rewards.
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