Time discounting: Declining impatience and interval effect

Yusuke Kinari, Fumio Ohtake, Yoshiro Tsutsui

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

Most studies have not distinguished delay from intervals, so that whether the declining impatience really holds has been an open question. We conducted an experiment that explicitly distinguishes them, and confirmed it at short delay such as less than 8-week delay. This implies that people make dynamically inconsistent plans. We also found the interval effect that the time discount rate decreases with prolonged intervals. We show that the interval and the magnitude effects are caused because intertemporal choice is made partially based on the differential in reward amount, while Weber’s law explains neither the delay nor the interval effects sufficiently.

Original languageEnglish
Title of host publicationBehavioral Economics of Preferences, Choices, and Happiness
PublisherSpringer Japan
Pages49-76
Number of pages28
ISBN (Electronic)9784431554028
ISBN (Print)9784431554011
DOIs
Publication statusPublished - Jan 1 2016

All Science Journal Classification (ASJC) codes

  • Economics, Econometrics and Finance(all)
  • Business, Management and Accounting(all)
  • Psychology(all)

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  • Cite this

    Kinari, Y., Ohtake, F., & Tsutsui, Y. (2016). Time discounting: Declining impatience and interval effect. In Behavioral Economics of Preferences, Choices, and Happiness (pp. 49-76). Springer Japan. https://doi.org/10.1007/978-4-431-55402-8_3