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Reason and Intuition01:37

Reason and Intuition

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The human brain processes information for decision-making using one of two routes: an intuitive system and a rational system (Epstein, 1994; popularized by Kahneman, 2011 as System 1 and System 2, respectively). The intuitive system is quick, impulsive, and operates with minimal effort, relying on emotions or habits to provide cues for what to do next, while the rational system is logical, analytical, deliberate, and methodical. Research in neuropsychology suggests that the...
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The Availability Heuristic01:08

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A heuristic is a general problem-solving framework (Tversky & Kahneman, 1974). You can think of these as mental shortcuts that are used to solve problems. Different types of heuristics are used in different types of situations, and the impulse to use a heuristic occurs when one of five conditions is met (Pratkanis, 1989):
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Framing Effects03:26

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Information is everywhere and its presentation—such as how and when items are presented—can impact our perceptions and decisions surrounding the info. This broad concept umbrellas framing effects—influences that occur due to the way information is framed in its appearance, whether it’s purely the order or the specific wording of a message. Let’s take a look at numerous ways in which two versions of something can objectively say the same thing, yet we respond in...
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Timing and Consequences on Behavior01:08

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In operant conditioning, the timing of reinforcement is crucial. For animals like rats and cats, immediate reinforcement (within a few seconds) is much more effective than delayed reinforcement. For example, a food reward for a rat needs to follow within 30 seconds of pressing a bar to be effective. 
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The Anchoring-and-Adjustment Heuristic01:25

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In order to make good decisions, we use our knowledge and our reasoning. Often, this knowledge and reasoning is sound and solid. However, sometimes, we are swayed by biases or by others manipulating a situation. For example, let’s say you and three friends wanted to rent a house and had a combined target budget of $1,600. The realtor shows you only very run-down houses for $1,600 and then shows you a very nice house for $2,000. Might you ask each person to pay more in rent to get the...
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Frustration and Conflict: Avoidance-Avoidance, Double-Approach Avoidance01:14

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Avoidance-avoidance conflict refers to a psychological situation where a person must choose between two or more unpleasant alternatives. These conflicts are particularly stressful because neither option is desirable. This dilemma is often expressed in sayings like "caught between a rock and a hard place" or "between the devil and the deep blue sea." For instance, individuals who fear dental procedures may find themselves torn between enduring a painful toothache or facing the...
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Related Experiment Video

Updated: Jul 16, 2025

The Joint Effect of Social Comparison and Social Distance on Evaluation of Intertemporal Choice Outcomes in Event-related Potential Studies
08:24

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

742

Scarcity and intertemporal choice.

Eesha Sharma1, Stephanie M Tully2, Xiang Wang3

  • 1Department of Marketing, Fowler College of Business, San Diego State University.

Journal of Personality and Social Psychology
|September 14, 2023
PubMed
Summary
This summary is machine-generated.

Scarcity influences decisions, but not always impulsively. The time horizon of threatened needs, not just myopia, shapes choices under scarcity, guiding people toward contextually appropriate decisions.

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Area of Science:

  • Behavioral Economics
  • Decision Science
  • Psychology

Background:

  • Scarcity often leads to present-biased choices, typically attributed to myopic or impulsive decision-making.
  • Existing theories may overlook crucial contextual factors influencing how scarcity impacts intertemporal choices.

Purpose of the Study:

  • To investigate the role of the time horizon of threatened needs in moderating scarcity's effect on intertemporal choice.
  • To challenge the purely myopic/impulsive decision-making account of scarcity.

Main Methods:

  • Analysis of Federal Reserve Bank of Philadelphia data (Study 1).
  • Five preregistered studies (N=10,297) involving scarcity perception manipulation, intertemporal choice tasks, and varying time horizons for needs.
  • Controlled experiments manipulating scarcity, time horizon, and need importance.

Main Results:

  • The time horizon of threatened needs significantly moderates intertemporal decisions under scarcity.
  • Preferences for sooner outcomes increase with shorter time horizons for needs, and reverse with longer horizons.
  • Decision-making under scarcity reflects consideration of both the importance and temporal proximity of needs.

Conclusions:

  • Intertemporal choice under scarcity is not solely driven by myopia but is influenced by the temporal framing of threatened needs.
  • People facing scarcity make contextually appropriate decisions, considering the urgency and importance of their needs.
  • Understanding the time horizon of needs is crucial for designing effective interventions to alter behavior under scarcity.