The psychology of intertemporal discounting: Why are distant events valued differently from proximal ones?

Dilip Soman, George Ainslie, Shane Frederick, Xiuping Li, John Lynch, Page Moreau, Andrew Mitchell, Daniel Read, Alan Sawyer, Yaacov Trope, Klaus Wertenbroch, Gal Zauberman

Research output: Contribution to journalArticle

Abstract

Research in intertemporal choice has been done in a variety of contexts, yet there is a remarkable consensus that future outcomes are discounted (or undervalued) relative to immediate outcomes. In this paper, we (a) review some of the key findings in the literature, (b) critically examine and articulate implicit assumptions, (c) distinguish between intertemporal effects arising due to time preference versus those due to changes in utility as a function of time, and (d) identify issues and questions that we believe serve as avenues for future research.

Original languageEnglish (US)
Pages (from-to)347-360
Number of pages14
JournalMarketing Letters
Volume16
Issue number3-4
DOIs
StatePublished - Dec 2005

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics
  • Marketing

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