A Discounting Model for Decisions With Delayed Positive or Negative Outcomes

Many decisions involve future consequences. Although research in incentive theory, delay of gratification, and impulse control has demonstrated preferences for more immediate consequences, very little research has been done on the discounting process underlying the evaluation of delayed consequences. The present studies were designed to assess the subjective values of investments and credit plans that were defined as temporally remote outcomes. Three studies used investment stimuli that varied in the amount of interest to be gained in the future. The fourth study used credit plans and investments that varied in the amount of money to be lost in the future. Converging support was obtained for a ratio discounting function for time. The results are discussed in relation to (a) the evidence for a ratio discounting function for time, (b) the presence of task-dependent response patterning, and (c) the comparison of subjective values for money and time derived with risky and riskless stimuli.