Related Experiment Video
Updated: Jul 11, 2025
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
740
A formal analysis of inconsistent decisions in intertemporal choice through subjective time perception
Salvador Cruz Rambaud1, Javier Sánchez García1
1Departamento de Economía y Empresa, Universidad de Almería, La Cañada de San Urbano, s/n (04120), Almería, Spain.
Heliyon
|November 13, 2023
Summary
This study analyzes subjective time perception in intertemporal choice, challenging exponential discounting. It characterizes decreasing impatience by focusing on time distortion due to psychological traits.
Area of Science:
- Behavioral Economics
- Decision Science
- Psychology
Background:
- Intertemporal choice involves decisions on future outcomes.
- Exponential discounting is a standard methodology for measuring preferences for delayed outcomes.
- The standard model assumes consistent choices, which is often violated when time is subjective.
Purpose of the Study:
- To formally analyze the consistency of intertemporal choices.
- To investigate choices governed by a discount function derived from exponential discounting.
- To characterize decreasing impatience based on subjective time distortion.
Main Methods:
- Formal analysis of intertemporal choice consistency.
- Utilizing a discount function derived from exponential discounting.
- Focusing on time distortion influenced by psychological traits.
Main Results:
- Identified inconsistencies in intertemporal choices under subjective time perception.
- Characterized different types of decreasing impatience.
- Demonstrated the impact of psychological traits on time distortion in decision-making.
Conclusions:
- The exponential discounting model is insufficient for scenarios with subjective time perception.
- Understanding subjective time distortion is crucial for explaining decision-maker behavior.
- Findings have implications for finance, psychology, marketing, and sociology.
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