Time discounting for primary and monetary rewards

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Time discounting for primary and monetary rewards

There is considerable evidence indicating individuals are highly impatient. In particular, they exhibit higher discount rates in the short run than in the long run (Frederick et al., 2002). This result has significant implications for how we model intertemporal decisionmaking (Strotz, 1955–56). In most of the experiments, short-term discount rates are measured using monetary rewards delivered a...

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Time discounting for primary rewards.

Previous research, involving monetary rewards, found that limbic reward-related areas show greater activity when an intertemporal choice includes an immediate reward than when the options include only delayed rewards. In contrast, the lateral prefrontal and parietal cortex (areas commonly associated with deliberative cognitive processes, including future planning) respond to intertemporal choic...

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Discounting of monetary and directly consumable rewards.

We compared temporal and probability discounting of a nonconsumable reward (money) and three directly consumable rewards (candy, soda, and beer). When rewards were delayed, monetary rewards were discounted less steeply than directly consumable rewards, all three of which were discounted at equivalent rates. When rewards were probabilistic, however, there was no difference between the discountin...

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Enhanced Neural Responses to Imagined Primary Rewards Predict Reduced Monetary Temporal Discounting.

The pervasive tendency to discount the value of future rewards varies considerably across individuals and has important implications for health and well-being. Here, we used fMRI with human participants to examine whether an individual's neural representation of an imagined primary reward predicts the degree to which the value of delayed monetary payments is discounted. Because future rewards c...

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Some Comments on the Use of Monetary and Primary Rewards in the Measurement of Time Preferences

The experiments reported in Halevy (2014) utilize cash payments to elicit subjects' temporal preferences. Some researchers (Cubitt and Read, 2007) argue that only primary rewards should be used to elicit such choices, since models of intertemporal preferences study the substitution between utility ows and not monetary payments. As such, the argument continues, all economists would agree that a ...

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ژورنال

عنوان ژورنال: Economics Letters

سال: 2010

ISSN: 0165-1765

DOI: 10.1016/j.econlet.2009.10.020