The Psychology of Intertemporal Discounting: Why are Distant Events Valued Differently from Proximal Ones?
AbstractResearch in intertemporal choice has been done in a variety of contexts, yet there is a remarkable consensus that future outcomes are discounted (or undervalued) relative to immediate outcomes. In this paper, we (a) review some of the key findings in the literature, (b) critically examine and articulate implicit assumptions, (c) distinguish between intertemporal effects arising due to time preference versus those due to changes in utility as a function of time, and (d) identify issues and questions that we believe serve as avenues for future research. Copyright Springer Science + Business Media, Inc. 2005
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Bibliographic InfoArticle provided by Springer in its journal Marketing Letters.
Volume (Year): 16 (2005)
Issue (Month): 3 (December)
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Web page: http://www.springerlink.com/link.asp?id=100312
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Why are distant events valued differently from proximal ones?
by Miguel in Simoleon Sense on 2011-08-18 16:12:26
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- de La Bruslerie, Hubert, 2009. "Term structure of psychological interest rates: A behavioural test," Economics Papers from University Paris Dauphine 123456789/3033, Paris Dauphine University.
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- Rogers, Todd & Bazerman, Max H., 2008. "Future lock-in: Future implementation increases selection of 'should' choices," Organizational Behavior and Human Decision Processes, Elsevier, vol. 106(1), pages 1-20, May.
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