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TOWARDS A GENERAL MODEL OF TEMPORAL DISCOUNTING
Author(s) -
van den Bos Wouter,
McClure Samuel M.
Publication year - 2013
Publication title -
journal of the experimental analysis of behavior
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.75
H-Index - 61
eISSN - 1938-3711
pISSN - 0022-5002
DOI - 10.1002/jeab.6
Subject(s) - hyperbolic discounting , discounting , temporal discounting , impulsivity , neuroeconomics , merge (version control) , intertemporal choice , cognition , cognitive neuroscience , cognitive psychology , time preference , econometrics , psychology , computer science , mathematical economics , economics , microeconomics , neuroscience , developmental psychology , finance , information retrieval
Abstract Psychological models of temporal discounting have now successfully displaced classical economic theory due to the simple fact that many common behavior patterns, such as impulsivity, were unexplainable with classic models. However, the now dominant hyperbolic model of discounting is itself becoming increasingly strained. Numerous factors have arisen that alter discount rates with no means to incorporate the different influences into standard hyperbolic models. Furthermore, disparate literatures are emerging that propose theoretical constructs that are seemingly independent of hyperbolic discounting. We argue that, although hyperbolic discounting provides an eminently useful quantitative measure of discounting, it fails as a descriptive psychological model of the cognitive processes that produce intertemporal preferences. Instead, we propose that recent contributions from cognitive neuroscience indicate a path for developing a general model of time discounting. New data suggest a means by which neuroscience‐based theory may both integrate the diverse empirical data on time preferences and merge seemingly disparate theoretical models that impinge on time preferences.