Subadditive versus hyperbolic discounting: A comparison of choice and matching

Organizational Behavior and Human Decision Processes

Volumn 91, Issue 2, 2003, Pages 140-153

  Read, Daniel ^a   Roelofsma, Peter H M P ^b  

^a LONDON SCHOOL OF ECONOMICS   (United Kingdom)

^b VU UNIVERSITY AMSTERDAM   (Netherlands)

Author keywords

Dynamic inconsistency; Hyperbolic discounting; Impulsivity; Intertemporal choice; Subadditive discounting; Time preference

Indexed keywords

EID: 0042705096     PISSN: 07495978     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0749-5978(03)00060-8     Document Type: Article

References (48)

1. Ahlbrecht, M., & Weber, M. (1997). An empirical study on intertemporal decision making under risk. Management Science, 43, 813-826.
2. Ainslie, G. (1975). Specious reward: A behavioral theory of impulsiveness and impulse control. Psychological Bulletin, 82, 463-469.
3. Benzion, U., Rapaport, A., & Yagil, J. (1989). Discount rates inferred from decisions: An experimental study. Management Science, 35, 270-284.
4. Chapman, G. B. (2001). Time preferences for the very long term. Acta Psychologica, 109, 95-116.
5. Chapman, G. B., & Elstein, A. S. (1995). Valuing the future: Temporal discounting of health and money. Medical Decision Making, 15, 373-386.
6. Crean, J. P., de Wit, H., & Richards, J. (1999). Reward discounting as a measure of impulsive behavior in a psychiatric outpatient population. Experimental and Clinical Pharmacology, 8, 155-162.
7. Frank, R. H. (1988). Passions within reason: The strategic role of the emotions. New York: W.W. Norton.
8. Frederick, S., Loewenstein, G., & O'Donoghue, M. (2002). Time discounting and time preference: A critical review. Journal of Economic Literature, XL, 351-401.
9. Frederick, S., Read, D. (2003). The temporal framing effect in intertemporal choice. Working paper, London School of Economics and Political Science.
10. Green, L., Fristoe, N., & Myerson, J. (1994a). Temporal discounting and preference reversals in choice between delayed outcomes. Psychonomic Bulletin and Review, 1, 383-389.
11. Green, L., Fry, A., & Myerson, J. (1994b). Discounting of delayed rewards: A life-span comparison. Psychological Science, 5, 33-36.
12. Green, L., & Myerson, J. (1993). Alternative frameworks for the study of self-control. Behavior and Philosophy, 21, 37-47.
13. Green, L., Myerson, J., & McFadden, E. (1997). Rate of temporal discounting decreases with amount of reward. Memory and Cognition, 25, 715-723.
14. Harvey, C. M. (1994). The reasonableness of non-constant discounting. Journal of Public Economics, 53, 31-51.
15. Hays, W. L. (1981). Statistics. New York: Holt, Rhinehart & Winston.
16. Heyman, G. M. (1996). Resolving the contradictions of addiction. Behavioral and Brain Sciences, 19, 561-610.
17. Hoch, S., & Loewenstein, G. (1991). Time inconsistent preferences and consumer self-control. Journal of Consumer Research, 17, 492-507.
18. Horowitz, J. K. (1991). Discounting money payoffs: An experimental analysis. In S. Kaish, & B. Gilad (Eds.), Handbook of behavioral economics. Greenwich: JAI Press.
19. Kirby, K. N. (1997). Bidding on the future: Evidence against normative discounting of delayed rewards. Journal of Experimental Psychology: General, 126, 54-70.
20. Kirby, K. N., & Herrnstein, R. J. (1995). Preference reversals due to myopic discounting of delayed reward. Psychological Science, 6, 83-89.
21. Kirby, K. N., & Marakovic, N. (1995). Modeling myopic decisions: Evidence for hyperbolic delay-discounting within subjects and amounts. Organizational Behavior and Human Decision Processes, 64, 22-30.
22. Laibson, D. (1997). Golden eggs and hyperbolic discounting. Quarterly Journal of Economics, 112, 443-477.
23. Laibson, D., Repetto, A., & Tobacman, J. (1998). Self-control and saving for retirement. Brookings Papers on Economic Activity, 1, 91-196.
24. Lichtenstein, S., & Slovic, P. (1971). Reversals of preferences between bids and choices in gambling decisions. Journal of Experimental Psychology, 89, 46-55.
25. Loewenstein, G. (1996). Out of control: Visceral influences on behavior. Organizational Behavior and Human Decision Processes, 65, 272-293.
26. Loewenstein, G., & Prelec, D. (1992). Anomalies in intertemporal choice: Evidence and an interpretation. Quarterly Journal of Economics, 107, 573-597.
27. Madden, G. J., Bickel, W. K., & Jacobs, E. A. (1999). Discounting of delayed rewards in opioid dependent outpatients: Exponential or hyperbolic discounting functions. Journal of Experimental and Clinical Psychopharmacology, 7, 284-293.
28. Mazur, J. E. (1984). An adjusting procedure for studying delayed reinforcement. In M. L. Commons, J. E. Mazur, J. A. Nevin, & H. Rachlin (Eds.), Quantitative analyses of behavior: The effect of delay and of intervening events on reinforcement. Hillsdale, NJ: Erlbaum.
29. Mulligan, C. B. (1996). A logical economist's argument against hyperbolic discounting. Working paper, Department of Economics, University of Chicago. Available: http://www.spc.uchicago.edu/~wwwcbm4/.
30. Nozick, R. (1993). The nature of rationality. Princeton, NJ: Princeton University Press.
31. O'Donoghue, T., & Rabin, M. (1999). Doing it now or later. American Economic Review, 89, 103-124.
32. O'Donoghue, T., & Rabin, M. (2000). The economics of immediate gratification. Journal of Behavioral Decision Making, 13, 233-250.
33. Prelec, D. (1989). Decreasing impatience: Definition and consequences. Working paper Harvard Business School.
34. Rachlin, H., & Green, L. (1972). Commitment, choice and self-control. Journal of the Experimental Analysis of Behavior, 17, 15-22.
35. Rachlin, H., Raineri, A., & Cross, D. (1991). Subjective probability and delay. Journal of the Experimental Analysis of Behavior, 55, 233-244.
36. Raineri, A., & Rachlin, H. (1993). The effect of temporal constraints on the value of money and other commodities. Journal of Behavioral Decision Making, 6, 77-94.
37. Read, D. (2001a). Intrapersonal dilemmas. Human Relations, 54, 1093-1117.
38. Read, D. (2001b). Is time-discounting hyperbolic or subadditive? Journal of Risk and Uncertainty, 23, 5-32.
39. Read, D., & Van Leeuwen, B. (1998). Predicting hunger: The effects of appetite and delay on choice. Organizational Behavior and Human Decision Processes, 76, 189-205.
40. Richards, J. B., Zhang, L., Mitchell, S. H., & De Wit, H. (1999). Delay or probability discounting in a model of impulsive behavior: Effect of alcohol. Journal of the Experimental Analysis of Behavior, 71, 121-143.
41. Rubinstein, A. (2001). Is it 'economics and psychology:' The case of hyperbolic discounting. NAJ 1, 1. Available: http://www.najecon.org.
42. Samuelson, P. (1937). A note on the measurement of utility. Review of Economic Studies, 4, 155-161.
43. Siegel, S. (1956). Nonparametric methods for the social sciences. New York: McGraw-Hill.
44. Strotz, R. H. (1955). Myopia and inconsistency in dynamic utility maximization. Review of Economic Studies, 23, 165-180.
45. Thaler, R. H. (1981). Some empirical evidence on dynamic inconsistency. Economic Letters, 8, 201-207.
46. Trope, Y., & Liberman, N. (2000). Temporal construal and time-dependent changes in preference. Journal of Personality and Social Psychology, 79, 876-889.
47. Tversky, A., Sattath, S., & Slovic, P. (1988). Contingent weighting in judgment and choice. Psychological Review, 95, 371-384.
48. Wilson, J. Q. (1993). The moral sense. New York: Free Press.