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Discounting Behavior in Problem Gambling

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  • Ring, Patrick
  • Probst, Catharina C.
  • Neyse, Levent
  • Wolff, Stephan
  • Kaernbach, Christian
  • van Eimeren, Thilo
  • Schmidt, Ulrich

Abstract

Problem gamblers discount delayed rewards more rapidly than do non-gambling controls. Understanding this impulsivity is important for developing treatment options. In this article, we seek to make two contributions: First, we ask which of the currently debated economic models of intertemporal choice (exponential versus hyperbolic versus quasi-hyperbolic) provides the best description of gamblers’ discounting behavior. Second, we ask how problem gamblers differ from habitual gamblers and non-gambling controls within the most favored parametrization. Our analysis reveals that the quasi-hyperbolic discounting model is strongly favored over the other two parametrizations. Within the quasi-hyperbolic discounting model, problem gamblers have both a significantly stronger present bias and a smaller long-run discount factor, which suggests that gamblers’ impulsivity has two distinct sources.

Suggested Citation

  • Ring, Patrick & Probst, Catharina C. & Neyse, Levent & Wolff, Stephan & Kaernbach, Christian & van Eimeren, Thilo & Schmidt, Ulrich, 2022. "Discounting Behavior in Problem Gambling," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 38(2), pages 529-543.
    • Handle: RePEc:zbw:espost:236623
    DOI: 10.1007/s10899-021-10054-x
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    References listed on IDEAS

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