Cognition and Perception Commons^™

Intertemporal Similarity: Discounting As A Last Resort, Jeffrey R. Stevens

Jeffrey Stevens Publications

Standard models of intertemporal choice assume that individuals discount future payoffs by integrating reward amounts and time delays to generate a discounted value. Alternative models propose that, rather than integrate across them, individuals compare within attributes (amounts and delays) to determine if differences in one attribute outweigh differences in another attribute. For instance, Leland (2002) and Rubinstein (2003) propose models that 1) compare the two reward amounts to determine whether they are similar, 2) compare the similarity of the two time delays, and then 3) make a decision based on these similarity judgments. Here, I tested discounting models against attribute-based …