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Tempospect Theory of Intertemporal Choice

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Author(s): Taiki Takahashi | Ruokang Han

Journal: Psychology
ISSN 2152-7180

Volume: 03;
Issue: 08;
Start page: 555;
Date: 2012;
Original page

Keywords: Time Discounting | Psychological Time | Psychophysics | Behavioral Economics | Neuroeconomics

ABSTRACT
Anomalies in intertemporal choice (e.g. hyperbolic discounting, subadditive discounting, a sign effect, a magnitude effect, and a delay-speedup asymmetry) have been investigated in neuroeconomics and behavioral neuroeconomics. In this study we propose a “tempospect” theory of intertemporal choice which can account for these anomalies in intertemporal choice. The key features of the present theory are: 1) decision over time is made with psychological time; and 2) psychological time is determined by a change in delay until receipt (i.e., positive or negative time-interval between options); 3) psychological time is less sensitive to a decrease in delay in comparison to an increase in delay; and 4) psychological time is influenced by the sign and magnitude of the delayed outcomes. Implications of the present theory for neuroeconomics are discussed.
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