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The effect of temporal constraints on the value of money and other commodities
Author(s) -
Raineri Andres,
Rachlin Howard
Publication year - 1993
Publication title -
journal of behavioral decision making
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.136
H-Index - 76
eISSN - 1099-0771
pISSN - 0894-3257
DOI - 10.1002/bdm.3960060202
Subject(s) - discounting , consumption (sociology) , time value of money , value (mathematics) , economics , econometrics , temporal discounting , variable (mathematics) , microeconomics , computer science , mathematical economics , statistics , mathematics , mathematical analysis , social science , finance , sociology
Abstract The value of hypothetical rewards of various delays and durations, consisting of money or other commodities, such as automobile use and vacations, was measured by the psychophysical up‐down staircase method using an amount of unrestricted immediate money as the titrated variable. A model of temporal discounting based on implied constraints on anticipated consumption rate described the data. Further explicit constraints on consumption produced predictable deviations from the model. The concept that consumption is normally constrained together with time discounting may also explain the interaction between amount and delay of monetary reward in determining value and may provide the basis for a theory of addiction based on learning to increase consumption rate.