We show that observed choices in discounting experiments are consistent with roughly one-half of the subjects using exponential discounting and one-half using quasi-hyperbolic discounting. We characterize the latent data generating process using a mixture model which allows different subjects to behave consistently with each model. Our results have substantive implications for the assumptions m...

Social decision making (e.g. social discounting and social preferences) has been attracting attention in economics, econophysics, social physics, behavioral psychology and neuroeconomics. This paper proposes a novel social discounting model based on the deformed algebra developed in the Tsallis' non-extensive thermostatistics. Furthermore, it is suggested that this model can be utilized to quan...

We present the first revealed-preference characterizations of the models of exponential discounting, quasi-hyperbolic discounting, and other time-separable models of consumers’ intertemporal decisions. We contribute to the axiomatic work that tries to describe the behavioral content of models of intertemporal choice. Ours is the first axiomatization of these models taking finite consumption str...

Interpreting Time Horizon Effects in Inter-Temporal Choice We compare different designs that have been used to test for an impact of time horizon on discounting, using real incentives and two representative data sets. With the most commonly used type of design we replicate the typical finding of declining (hyperbolic) discounting, but with other designs find constant or increasing discounting. ...

Temporal-difference (TD) algorithms have been proposed as models of reinforcement learning (RL). We examine two issues of distributed representation in these TD algorithms: distributed representations of belief and distributed discounting factors. Distributed representation of belief allows the believed state of the world to distribute across sets of equivalent states. Distributed exponential d...

OBJECTIVE To consider the effect of the economic discount rate on health care policy and the rationale for discounting the collective future of society generally. DESIGN A review of the concept of discounting the future vis à vis the present from the points of view of individuals (who pass on) and of societies (that continue) and reconsideration of the application of discounting to typical pu...

Intertemporal choice, the tradeoff among outcomes occurring at different points in time, involves not only benefit options but also those associated with cost. Previous neuroimaging studies have primarily focused on discounting future gains; thus the neural mechanism underlying discounting future losses remains unidentified. Using event-related functional magnetic resonance imaging, we comprehe...

Discounting is a behavioral phenomenon in which the value of an outcome diminishes as a function of its increased delay or decreased probability and is related to substance abuse research because of its theoretical ties with behavioral models of impulsive choice. Research to date suggests that hypothetical outcomes used in discounting research yield data that are indistinguishable from those us...

A probability weighting function (w(p)) is considered to be a nonlinear function of probability (p) in behavioral decision theory. This study proposes a psychophysical model of probability weighting functions derived from a hyperbolic time discounting model and a geometric distribution. The aim of the study is to show probability weighting functions from the point of view of waiting time for a ...

Delay discounting describes the subjective devaluation of a reward when it is delayed. In animals, the adjusting-delay (AD) and increasing-delay (ID) tasks often are used to assess individual differences in, and drug effects on, delay discounting. No study to date, however, has compared systematically the measures of discounting produced in these tasks. The current study examined the correlatio...