Probabilistic discounting of hypothetical monetary gains: University students differ in how they discount “won” and “owed” money

Weatherly, Jeffrey N.; Derenne, Adam

doi:10.1016/j.lmot.2012.04.002

Cited by 4 publications

(3 citation statements)

References 21 publications

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“…This finding supports the proposition that gains and losses have independent discounting processes that can be maintained when judged in combination. These results correspond to the findings in the literature showing different discounting functions for gains and losses (Antonides & Wunderink, 2001;Benzion et al, 1989;Blackburn & El-Deredy, 2013;& Elstein, 1995;Chapman, 1996;Estle et al, 2006;Kirby & Marakovic, 1996;Raineri & Rachlin, 1993;Thaler, 1981;Weatherly & Derene, 2013) and physiological results (e.g., Cooper & Knutson, 2008;Pine et al, 2010;Schultz, 2010;et al, 2014;Weller et al, 2007;Xu et al, 2009).…”

Section: Discussionsupporting

confidence: 91%

“…Equation 1 implies that for positive consequences, S i > 0, the judged value of the delayed consequence decreases with time, but for negative consequences, that is, when S i < 0, the judged values increase as the delay increases. People prefer to receive cash now and put off payments until later in many cases, all other factors being the same (Antonides & Wunderink, 2001; Benzion, Rapoport, & Yagil, 1989; Blackburn & El-Deredy, 2013; Chapman, 1996; Chapman & Elstein, 1995; Estle, Green, Myerson, & Holt, 2006; Kirby & Marakovic, 1996; Raineri & Rachlin, 1993; Thaler, 1981; Weatherly & Derene, 2013).…”

Section: Gains and Lossesmentioning

confidence: 99%

“…When weighting functions have been estimated for gains and losses presented separately, they have often been reported to be different (Antonides & Wunderink, 2001; Benzion et al, 1989; Blackburn & El-Deredy, 2013; Chapman, 1996; Chapman & Elstein, 1995; Estle, Green, Myerson, & Holt, 2006; Kirby & Marakovic, 1996; Raineri & Rachlin, 1993; Thaler, 1981; Weatherly & Derene, 2013). The discounting rate for gains is greater than the rate obtained for losses.…”

Section: Gains and Lossesmentioning

confidence: 99%

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Temporal discounting and context: Discounting weights for gains and losses presented in isolation and in combination.

Stevenson¹

2019

Decision

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The current study compares the judged values of delayed gains and delayed losses presented in isolation and combined. An additive model was used to estimate the subjective values and delay weights for individual participants. In the first set of judgments the delays were in the same range for gains and losses. During the second set of judgments, the range of delays was lengthened for the gains for one group and lengthened for the losses for the other group. The subjective values of the gains and losses were consistent across the two sets of judgments whether isolated or combined but differed for isolated and combined outcomes. The discounting weights differed for gains and losses regardless of whether they were isolated or combined. The shift in the range of the delays provided a test of the impact of context on the discounting weights. Increasing the range of delays for gains changed the discounting weights for gains that were common to both delay ranges. The shift in the delay range for gains also impacted the discounting weights for losses which were not changed. Increasing the delay range for losses changed the delay weights that were common to both the short and long time ranges. Shifting the delay range for losses also impacted the discounting weights for gains. These findings indicated that context theory is an important factor in broadening the understanding of temporal discounting.

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Section: Discussionsupporting

confidence: 91%

Section: Gains and Lossesmentioning

confidence: 99%

Section: Gains and Lossesmentioning

confidence: 99%

See 1 more Smart Citation

Temporal discounting and context: Discounting weights for gains and losses presented in isolation and in combination.

Stevenson¹

2019

Decision

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Magnitude Effects in Delay and Probability Discounting When Monetary and Medical Treatment Outcomes Are Discounted

Weatherly

Terrell

2014

Psychol Rec

Self Cite

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Delay and probability discounting occur when the subjective value of an outcome decreases because it is delayed or uncertain, respectively. Research using monetary outcomes has shown that both types of discounting are influenced by the magnitude of the outcome, but in the opposite direction. In Experiment 1, university participants completed a delaydiscounting task involving hypothetical monetary ($100 or $100,000) or medical treatment (acne or brain cancer) outcomes. In Experiment 2, university participants completed a probability-discounting task involving those same outcomes. Results from Experiment 1 replicated previous research in that participants discounted the "smaller" outcomes ($100 & acne treatment) more than the "larger" ones ($100,000 & braincancer treatment). Results from Experiment 2 demonstrated that this magnitude effect reversed for probability discounting of the monetary outcomes, with $100,000 discounted more than $100. However, acne treatment was discounted more than brain-cancer treatment. This study represents the novel finding that the magnitude effect for medical outcomes may not reverse between delay and probability discounting as it does for monetary outcomes. The results suggest that delay and probability discounting are at least partially independent.

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On several factors that control rates of discounting

Weatherly

2014

Behavioural Processes

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Probabilistic discounting of hypothetical monetary gains: University students differ in how they discount “won” and “owed” money

Cited by 4 publications

References 21 publications

Temporal discounting and context: Discounting weights for gains and losses presented in isolation and in combination.

Temporal discounting and context: Discounting weights for gains and losses presented in isolation and in combination.

Magnitude Effects in Delay and Probability Discounting When Monetary and Medical Treatment Outcomes Are Discounted

On several factors that control rates of discounting

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