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Tempospect Theory of Intertemporal Choice

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DOI: 10.4236/psych.2012.38082    4,204 Downloads   6,279 Views   Citations

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.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

Takahashi, T. & Han, R. (2012). Tempospect Theory of Intertemporal Choice. Psychology, 3, 555-557. doi: 10.4236/psych.2012.38082.

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