The sign effect in delay discounting tasks with children: evidence from quantitative and qualitative analyses

Delay discounting reflects the extent to which the subjective value of gains and losses decreases as a function of delay. Delay discounting has been observed throughout the lifespan. A consistent finding is that gains tend to be discounted more than losses of the same magnitude, a phenomenon known as the sign effect. To our knowledge, no study has assessed the sign effect in children. The aim of this study was to ascertain whether hypothetical monetary gains and losses are differentially discounted by children, ages 9 to 12. In this study 9-12-year-old children (n = 159) completed two discounting tasks, one involving a delayed gain, and the other a delayed loss of $200 pesos with delays ranging from 1 h to 3 months. We observed the sign effect when all data are considered. Also, children who showed systematic decreases in the value of the outcome as a function of delay discounted losses less steeply than gains. In addition, there were qualitative variations in patterns of discounting that differed with sign of the outcome. These results are congruent with previous studies on the sign effect with both adolescents and adults, and demonstrate the relative greater weight of losses on decision making in young children as well.