Side Effects in Time Discounting Procedures: Fixed Alternatives Become the Reference Point

Area of Science:

• Behavioral Economics
• Decision Science
• Cognitive Psychology

Background:

• Intertemporal choice research commonly uses two-alternative forced choice (2AFC) paradigms.
• The adjusting-amount procedure (AAP) involves fixed and adjusted alternatives, potentially creating a reference point effect.

Purpose of the Study:

• To investigate how fixing different alternatives in the AAP influences discount rates in intertemporal choices.
• To compare the impact of a fixed alternative versus explicitly imposed reference points on decision-making.

Main Methods:

• Utilized the adjusting-amount procedure (AAP) with 283 participants.
• Manipulated which alternative (smaller sooner or larger later) was fixed.
• Compared choices made with a fixed alternative to those with explicitly presented reference scenarios.

Main Results:

• Fixing an alternative in the AAP significantly influenced participants' discount rates.
• The extent of this influence was comparable to when reference points were explicitly stated prior to choices.
• Decision-making in intertemporal choice is sensitive to the procedural setup of the AAP.

Conclusions:

• The procedural design of the AAP, specifically the fixed alternative, acts as a salient reference point.
• This procedural reference point exerts a substantial influence on intertemporal choice behavior and discount rates.
• Researchers should consider the potential for procedural artifacts to affect findings in intertemporal choice studies.