2009
DOI: 10.1509/jmkr.46.4.543
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Discounting Time and Time Discounting: Subjective Time Perception and Intertemporal Preferences

Abstract: Consumers often make decisions about outcomes and events that occur over time. This research examines consumers' sensitivity to the prospective duration relevant to their decisions and the implications of such sensitivity for intertemporal trade-offs, especially the degree of present bias (i.e., hyperbolic discounting). The authors show that participants' subjective perceptions of prospective duration are not sufficiently sensitive to changes in objective duration and are nonlinear and concave in objective tim… Show more

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Cited by 523 publications
(441 citation statements)
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“…4 For instance, an increase in the interest rate from 1% to 2% will have greater impact than one from 20% to 21%. Similarly, there would be nonlinearity in the definition of T. While the DRIFT model with a linear T mimics some elements of hyperbolic discounting (patience increasing with increases in delay), a concave time-weighing function over delays (Scholten & Read, 2010;Zauberman et al, 2009) would be needed to produce time inconsistency, such that when both options are delayed by a common period of time preferences for SS can reverse in favor of LL. These modeling considerations are ignored in this article, which focuses on the qualitative implications of outcome framing.…”
Section: F(inance)mentioning
confidence: 99%
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“…4 For instance, an increase in the interest rate from 1% to 2% will have greater impact than one from 20% to 21%. Similarly, there would be nonlinearity in the definition of T. While the DRIFT model with a linear T mimics some elements of hyperbolic discounting (patience increasing with increases in delay), a concave time-weighing function over delays (Scholten & Read, 2010;Zauberman et al, 2009) would be needed to produce time inconsistency, such that when both options are delayed by a common period of time preferences for SS can reverse in favor of LL. These modeling considerations are ignored in this article, which focuses on the qualitative implications of outcome framing.…”
Section: F(inance)mentioning
confidence: 99%
“…For intertemporal choices, the tradeoffs involve time and amount-smaller sooner rewards compared with against larger later rewards. For some, the perfect real world example may be the decision of whether to endure lower (or no) wages during college so as to permit greater earnings later.The dominant method for investigating intertemporal choices in the lab has been to elicit choices between smaller-sooner and larger-later amounts of money (see, e.g., Ainslie & Haendel, 1983;Hardisty & Weber, 2009;Kirby, 1997;Read, 2001;Sayman & Öncüler, 2009;Weber et al, 2007;Zauberman, Kim, Malkoc, & Bettmann, 2009). Most of this research has focused on how discount rates are influenced by differences in the magnitude or timing of those outcomes (e.g., Benzion, Rapoport, & Yagil, 1989;Keren & Roelofsma, 1995;Kirby & Herrnstein, 1995;Scholten & Read, 2006;Thaler, 1981).…”
mentioning
confidence: 99%
“…The difference between today and a week from now is psychologically larger than the difference between 40 and 41 weeks from now. In an experiment in the context of delay discounting, Zauberman and associates (Zauberman, Kim, Malkoc, & Bettman, 2009) had subjects scale the perceived magnitude of future times, and reported the data shown in Figure 2. Adding it all up.…”
Section: Doing the Numbersmentioning
confidence: 99%
“…Alternatively, using existing techniques (see, e.g., Zauberman et al, 2009), future perspective might be measured and used as a covariate.…”
Section: The Original Derivation Of This Theory Included the Powers Amentioning
confidence: 99%
“…Our results also connect to time discounting in another manner. Specifically, discounting is known to be driven by time perception Zauberman et al 2009). Given our results about units of time, it seems likely that units might have an influence on time discounting and related self-control problems such as impulsive spending and obesity (Frederick, Loewenstein, and O'Donoghue 2002;Lynch and Zauberman 2006).…”
Section: Ann Mcgill Served As Editor and Stijn Van Osselaer Served Asmentioning
confidence: 99%