A guaranteed immediate payout reduces impatience of financially constrained individuals

A large stream of literature found that individuals who experience financial strain are particularly concerned about their present needs—that is, they are more likely to choose smaller immediate payoffs over larger future payoffs. In contrast, some recent findings suggest that financially constrained individuals may be more concerned about future needs instead (e.g., they are relatively more likely to invest in long-lived durables than in short-lived experiences). We propose that the use of traditional intertemporal choice tasks has made prior studies overly sensitive to the myopia-inducing effects of financial constraint. These tasks typically offer a choice between receiving a smaller payoff in the present versus a larger payoff in the future. Across three studies, we observe that, as long as some immediate payout is guaranteed, financially constrained individuals are as likely as nonconstrained individuals to accept a delay for a larger payoff. These findings qualify prior demonstrations of the myopic effects of financial constraint and suggest that the traditionally used choice paradigm might not accurately capture time preferences, particularly for financially constrained individuals. Furthermore, they provide possible interventions for those interested in reducing the myopia of financially constrained individuals who are facing all now versus all later decisions.

Reciprocal altruism may have evolved by accident

The most accepted explanation for the evolution of reciprocal altruism is based on cooperative reciprocators engaged in intertemporal choice. Here, we parsimoniously dismiss this narrative and suggest a new hypothesis based on random encounters of selfish individuals that result in theft. Theft can coexist with passive reactions on the victims, as it does not jeopardize survival and reproduction in times of abundance. As a result, offspring with psychological adaptations of not reacting to theft can become reliable reciprocators amid scarcity.

Working Memory Depletion Affects Intertemporal Choice Among Internet Addicts and Healthy Controls

Addiction to the Internet has emerged as a new kind of addictive behavior. Although previous studies have revealed that impairments in working memory led to suboptimal decision making (e.g., a greater willingness to choose smaller, more immediate rewards), little is known about how working memory affects intertemporal choice in Internet addicts and normal users. Thus, this study’s aim was to investigate the effect of working memory task on intertemporal choice in 33 participants addicted to internet and 25 healthy controls. Participants were administered (a) a test for Internet Addiction, (b) a single delay discounting self-report questionnaire (c) a working memory task. Differences between the Internet addicts and the control group were observed in terms of delay discounting rates, reaction times, and in memory accuracy rates. We observed significantly higher delay discounting rates among individuals addicted to the Internet. Moreover, it was documented that reaction times follow the 4-level working memory condition were significantly longer than follow the 2-level condition, in both the Internet addicts and the control group. The current findings suggest that Internet addicts are more likely to make short-sighted decisions than normal Internet users. The higher the level of working memory, the more likely an individual is to choose the present smaller reward, thus making short-sighted decisions, and have longer response times.

“Carpe Diem?”: Disjunction Effect of Incidental Affect on Intertemporal Choice

Incidental affect has an important impact on intertemporal choice (IC). This research aimed to test how positive incidental affect influences IC and its underlying mechanisms. We assumed that positive incidental affect may have a disjunction effect on IC that includes or excludes immediate time. Moreover, we examined the role of time perception for the effect of affect on IC. In Study 1, after undergoing affect priming by video clips, participants completed the IC task using a multiple staircase paradigm. Using Hierarchical Bayesian Modeling, we estimated the discount rate parameter by distinguishing “immediate” and “non-immediate” conditions of IC. The participants’ time perception was also measured. In Study 2, apart from the choice preference of IC, we additionally investigated the differences in the participants’ attention to delay and reward attributes before decision making. The results of the two studies indicated that positive incidental affect leads to longer time perception (Study 1) and prior and more attention to the delay attribute of IC (Study 2), which leads individuals to prefer immediate options in the IC (Studies 1 and 2). Moreover, there is a disjunction effect of affect; in other words, the incidental affect did not influence IC excluding immediate time (Studies 1 and 2). This study improves our understanding of the disjunctive effect and its mechanism of inducing a positive incidental affect on IC and thus provides a new perspective on how related decision making can be improved.

The effect of uncertainty on negative discounting

The preference to receive benefits as early as possible and delay costs as much as possible is natural for people. That means a positive discount rate in the intertemporal choice, which is a common assumption in economics. However, as research in behavioral economics proves, in certain situations a negative discount rate occurs. The purpose of this paper is to show that the assumption of positive discounting is not always true. The presented experimental study shows how a decrease in probability increases the chances of negative discounting. According to the results, the expected large, uncertain profit is more likely to be deferred over time than a certain profit of the same value. On the other hand, the expected large, uncertain loss is more willingly experienced earlier than a certain loss of the same value. In both cases, it means an increase in the frequency of negative discounting due to increased uncertainty. The results of the study broaden the existing knowledge about the impact of probability on discounting in a situation of expected losses and the area of negative discounting.

Choice bundling, unpacked: Observed and predicted effects on intertemporal choice in an additive model of hyperbolic delay discounting

One method known to increase preference for larger, later rewards (LLRs) over smaller, sooner rewards (SSRs) is choice bundling, in which a single choice produces a series of repeating consequences over time. The present study examined whether effects of choice bundling on preference for LLRs: (1) increase with the number of rewards in the bundle (i.e., bundle size); (2) are independent of differences in reward magnitude between conditions; and (3) accord with predictions of an additive model of hyperbolic delay discounting, in which the value of a bundle of rewards can be expressed as the summed discounted value of all rewards in that bundle. Participants (N = 252) completed a choice task to assess valuation of monetary LLRs at bundle sizes of 1 (control), 3, and 9 rewards per choice (ascending/descending order counterbalanced). To control for the magnitude effect, the total reward amounts were held constant across conditions. Choice bundling significantly increased LLR preference (p < .001), with the largest effect observed at the largest bundle size. The descending bundle-size order produced significantly greater LLR preference than the ascending order (p < .05), although order did not significantly interact with bundle size. Difference scores between observed measures and those predicted by an additive model of hyperbolic discounting were small and not significantly different than zero, but were not equivalent to zero. Future research should investigate the clinical utility of choice bundling for reducing the maladaptive health behavior (e.g., substance use) with which delay discounting is associated.

Prefrontal-Striatal Mechanisms of Behavioral Impulsivity During Consumption of Delayed Real Liquid Rewards

Intertemporal choice involves the evaluation of future rewards and reflects behavioral impulsivity. After choosing a delayed reward in an intertemporal choice, a behavioral agent waits for, receives, and then consumes the reward. The current study focused on the consumption of the delayed reward and examined the neural mechanisms of behavioral impulsivity. In humans consuming delayed real liquid rewards in an intertemporal choice, the ventral striatum (VS) showed differential activity between anterior (aVS) and posterior (pVS) regions depending on the degree of behavioral impulsivity. Additionally, impulsive individuals showed activity in the anterior prefrontal cortex (aPFC). An analysis of task-related effective connectivity based on psychophysiological interaction (PPI) revealed that PPI was robust from the aPFC to pVS, but not in the opposite direction. On the other hand, strong bidirectional PPIs were observed between the aVS and pVS, but PPIs from the pVS to aVS were enhanced in impulsive individuals. These results suggest that behavioral impulsivity is reflected in aPFC-VS mechanisms during the consumption of delayed real liquid rewards.