3 research outputs found

    Intertemporal decision making : studies on the working of myopia

    Get PDF
    Decisions where costs and benefits are spread over time are both common and important. Delayed outcomes are generally valued less than immediate ones. The degree of this devaluation is measured by a discount rate. Economic theory makes rather precise statements with respect to these discount functions. Experimental and field results, however, have revealed several anomalies to the standard model: observed discount rates vary over time, between objects, between situations and between people. This project investigates a) whether individual differences in discounting future outcomes are due to differences in socialization, b) whether hedonic goods are discounted more strongly than utilitarian goods, c) whether vividness influences discount rates for these goods, d) whether discount rates are influenced by the choice set from which an option has to be selected, and e) whether empirical results obtained in intertemporal choice can be generalized to other preference dimensions as well, e.g., risky choice, interspatial choice or interpersonal choice. To combine these streams of research framing theory is used.