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Humans, as with other animals, decide between courses of action based on the evaluation of the relative worth of expected outcomes. How outcome magnitude interacts with temporal delay, however, has yet eluded a principled understanding that reconciles the breadth of well-established behaviors in intertemporal decision-making. Here, we review the history of this endeavor to rationalize decision-making regarding the domain of time, highlighting extant theories, their limitations, and recent experimental and theoretical advances. These new advances recast long presumed deficiencies in observed decision-making behavior, not as flaws, but rather as signs of optimal decision-making under experiential constraints. This new conception naturally unites the fields of intertemporal decision-making and time perception, which have long been recognized to be interconnected but not yet unified in a formal framework.

Rationalizing Decision-Making: Understanding the Cost and Perception of Time