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Four score and seven years from now: the “date/delay effect” in temporal discounting

Read, Daniel, Orsel, Burcu, Rahman, Juwaria and Frederick, Shane (2004) Four score and seven years from now: the “date/delay effect” in temporal discounting. Operational Research working papers, LSEOR 04.65. Department of Operational Research, London School of Economics and Political Science, London, UK. ISBN 0753016877

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Abstract

We describe a new anomaly in intertemporal choice: the “date/delay effect:” Future outcomes are discounted more when time is referred to as a delay (e.g., ‘in 6 months’) than as a calendar date (e.g. on October 17th). The effect is demonstrated in four experiments, using both choice and matching response modes. Moreover, hyperbolic discounting is found only when time is referred to as a delay (discount rates are constant when time is referred to in terms of calendar dates). We conclude by suggesting that Rubinstein’s (2003) ‘similarity’ hypothesis as a potential explanation, and then consider some of its practical implications.

Item Type: Monograph (Working Paper)
Official URL: http://www.lse.ac.uk/collections/operationalResear...
Additional Information: © 2004 London School of Economics and Political Science
Library of Congress subject classification: B Philosophy. Psychology. Religion > BF Psychology
Sets: Research centres and groups > Management Science Group
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Identification Number: LSEOR 04.65
Date Deposited: 16 Feb 2009 10:18
URL: http://eprints.lse.ac.uk/22749/

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