Perception of anticipatory time in temporal discounting.

Abstract

The current article focuses on the role of anticipatory time perception in temporal discounting. We propose a perceived-time-based model and demonstrate that 2 aspects of time perception are relevant to hyperbolic discounting. Specifically, our model states that diminishing sensitivity to longer time horizons (i.e., how long individuals perceive short time horizons to be relative to long time horizons) and the level of time contraction overall (i.e., how long or short individuals perceive time horizons to be overall) contribute to the degree of hyperbolic discounting. We estimate individual differences in the degree of diminishing sensitivity to time and the degree of time contraction, and demonstrate that each significantly predicts the degree of hyperbolic discounting. These results empirically confirm two unique aspects of anticipatory time perception in determining individuals' temporal discounting.

Intertemporal Decision Making: A Mental Load Perspective

“…This perspective is supported by recent neurological research; e.g., [10], [13], [14], [21], [24]. For intertemporal comparison between values of options an element usually taken into account is a certain discounting rate.…”

“…It has been shown that this model is approximated by the wellknown hyperbolic model for shorter time durations or a lower value of the parameter  (for  = 0 by an exact match) and that it is approximated by the exponential model for longer time durations or a higher value of the parameter . Furthermore, it has been explored how this hyperbolic-exponential model relates to an approach assuming a difference between subjective and objective time (following, for example, [14], [20], [23], [25]) and a specific transformation between subjective and objective time, which can be approximated well by a time transformation based on a logarithmic function (e.g., as considered in [23]) or a power function (e.g., as considered in [25]). …”

“…In the second graph the absolute differences are depicted. In the recent literature another way of taking mental processing into account is by assuming perception of subjective time which is different from objective time (for example, advocated in [14], [20], [23], [25]). The different time measures can be related according to a time transformation function…”

“…In an abstract form this is represented as follows. Take the value of the option (for a given agent) in the present, and the value for the (other) option after time duration t. 1 To be comparable to the value for the option in the present, the value of the option for a future time point has to be higher; e.g., [1], [2], [5], [9], [14], [17]. In this paper the assumption is explored that a higher value of compared to is due to the expected extra amount of mental energy needed for the future option during the time interval [0, t] before the option has actually been obtained at time t; this can be formulated as follows: (1) The intuition behind this is that the mental work invested adds value to a product, in line with, for example, the Labour Theory of Value in economics (e.g., [6], [18], [22], [28]).…”

“…An interesting challenge is how such models can be explained on the basis of assumptions on more specific mental characteristics and processes involved. For example, they have been related to assumptions on subjective perception of time that essentially differs from objective time (e.g., [14], [20], [23], [25]). Also relations to underlying neural processes have been explored (e.g., [10], [13], [21], [24]).…”