The reward-maximization learning indifferent to historical state reproduces the preference reversal in intertemporal choice

PurposeThe purpose of this paper is to introduce the main measures of inconsistency in the context of intertemporal choice and to identify the relationships between them (more specifically, the measures by Prelec, Takahashi and Rohde). In effect, Thaler (1981), awarded the Nobel Prize in Economics 2017, argued that when a preference must be expressed between two reward options, some people may reverse their original preference when a significant delay is introduced before the reward is to be received. This anomaly is known as inconsistency in intertemporal choice.Design/methodology/approachAfter a revision of the existing literature and by using the methods from mathematical calculus, the authors have derived the logical relationships between the measures presented in this paper.FindingsThe main contribution of this paper is the proposal of a novel parameter, the so-defined ratio of two instantaneous discount rates, which the authors call the instantaneous variation rate, which allows relating some other measures of inconsistency, namely the measures described by Prelec and Rohde. A limitation of this paper is the unavailability of empirical information about the inconsistency measures needed to substantiate the theoretical findings. Indeed, this paper has social implications because recent behavioral and neuroeconomic studies have shown the existence of preference reversal or time inconsistency in other areas. The authors’ models can be implemented in these fields in order to better analyze the situations of inconsistency.Originality/valueThe originality of this paper lies in the authors’ aim to bring some order to the proposed measures of inconsistency which have arisen as a result of the different approaches adopted.

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Beyond reach: Do symmetric changes in motor costs affect decision making? A registered report

10.31234/osf.io/4bjeg ◽

2019 ◽

Author(s):

Arkady Zgonnikov ◽

Nadim Atiya ◽

Denis O'Hora ◽

Inaki Rano ◽

KongFatt Wong-Lin

Keyword(s):

Decision Making ◽

Cognitive Processes ◽

Intertemporal Choice ◽

Small Reward ◽

Motor Behavior ◽

Choice Task ◽

Preference Reversal ◽

Response Dynamics ◽

Mouse Cursor ◽

Computer Mouse

Executing an important decision can be as easy as moving a mouse cursor or reaching towards the preferred option with a hand. But would we decide differently if choosing required walking a few steps towards an option? More generally, is our preference invariant to the means and motor costs of reporting it? Previous research demonstrated that asymmetric motor costs can nudge the decision-maker towards a less costly option. However, virtually all traditional decision-making theories predict that increasing motor costs symmetrically for all options should not affect choice in any way. This prediction is disputed by the theory of embodied cognition, which suggests that motor behavior is an integral part of cognitive processes, and that motor costs can affect our choices. In this registered report, we investigated whether varying motor costs can affect response dynamics and the final choices in an intertemporal choice task: choosing between a readily available small reward and a larger but delayed reward. Our study compared choices reported by moving a computer mouse cursor towards the preferred option with the choices executed via a more motor costly walking procedure. First, we investigated whether relative values of the intertemporal choice options affect walking trajectories in the same way as they affect mouse cursor dynamics. Second, we tested a hypothesis that, in the walking condition, increased motor costs of a preference reversal would decrease the number of changes-of-mind and therefore increase the proportion of impulsive, smaller-but-sooner choices. We confirmed the hypothesis that walking trajectories reflect covert dynamics of decision making, and rejected the hypothesis that increased motor costs of responding affect decisions in an intertemporal choice task. Overall, this study contributes to the empirical basis enabling the decision-making theories to address the complex interplay between cognitive and motor processes.

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