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Distorted Time Preference? The Role Of Subjective Time Perception Ji Yong Park with C. Monica Capra There is abundant evidence from neuroscience and psychology suggesting that individuals experience time differently. Yet, subjective time perception has not received substantial scrutiny in economics. Indeed, prevalent economic theories assume that decision-makers share identical time duration, which is exogenously determined by the external clock. Individual discount rates are assumed to be uniquely determined by our valuation of future rewards. In this paper, we take the point of view that subjective time perception is a key determinant of time preference. We provide a framework for studying how distortions in the perception of time can be incorporated into inter-temporal choice. Using Steven’s Power Law we propose a new discount function that allows for variations in discounting due to personal characteristics and external factors. Our approach allows us to explain puzzling observations in inter-temporal choice, such as context dependent discounting, dynamic time inconsistent choices, present bias, and future bias. In addition, by introducing time perception into the discount function, we can explain interval effects such as subadditivity and superadditivity. To our knowledge there is no other approach that can provide a unifying framework for discounting that accounts for the observed anomalies in inter-temporal choice.