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

Fingerprint

Discounting
Time preference
Intertemporal choice
Psychology

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics
  • Marketing

Cite this

Soman, D., Ainslie, G., Frederick, S., Li, X., Lynch, J., Moreau, P., ... Zauberman, G. (2005). The psychology of intertemporal discounting: Why are distant events valued differently from proximal ones? Marketing Letters, 16(3-4), 347-360. https://doi.org/10.1007/s11002-005-5897-x

The psychology of intertemporal discounting : Why are distant events valued differently from proximal ones? / Soman, Dilip; Ainslie, George; Frederick, Shane; Li, Xiuping; Lynch, John; Moreau, Page; Mitchell, Andrew; Read, Daniel; Sawyer, Alan; Trope, Yaacov; Wertenbroch, Klaus; Zauberman, Gal.

In: Marketing Letters, Vol. 16, No. 3-4, 12.2005, p. 347-360.

Research output: Contribution to journalArticle

Soman, D, Ainslie, G, Frederick, S, Li, X, Lynch, J, Moreau, P, Mitchell, A, Read, D, Sawyer, A, Trope, Y, Wertenbroch, K & Zauberman, G 2005, 'The psychology of intertemporal discounting: Why are distant events valued differently from proximal ones?', Marketing Letters, vol. 16, no. 3-4, pp. 347-360. https://doi.org/10.1007/s11002-005-5897-x
Soman, Dilip ; Ainslie, George ; Frederick, Shane ; Li, Xiuping ; Lynch, John ; Moreau, Page ; Mitchell, Andrew ; Read, Daniel ; Sawyer, Alan ; Trope, Yaacov ; Wertenbroch, Klaus ; Zauberman, Gal. / The psychology of intertemporal discounting : Why are distant events valued differently from proximal ones?. In: Marketing Letters. 2005 ; Vol. 16, No. 3-4. pp. 347-360.
@article{14b5b382c51246cda8f05090971fb54b,
title = "The psychology of intertemporal discounting: Why are distant events valued differently from proximal ones?",
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.",
author = "Dilip Soman and George Ainslie and Shane Frederick and Xiuping Li and John Lynch and Page Moreau and Andrew Mitchell and Daniel Read and Alan Sawyer and Yaacov Trope and Klaus Wertenbroch and Gal Zauberman",
year = "2005",
month = "12",
doi = "10.1007/s11002-005-5897-x",
language = "English (US)",
volume = "16",
pages = "347--360",
journal = "Marketing Letters",
issn = "0923-0645",
publisher = "Springer New York",
number = "3-4",

}

TY - JOUR

T1 - The psychology of intertemporal discounting

T2 - Why are distant events valued differently from proximal ones?

AU - Soman, Dilip

AU - Ainslie, George

AU - Frederick, Shane

AU - Li, Xiuping

AU - Lynch, John

AU - Moreau, Page

AU - Mitchell, Andrew

AU - Read, Daniel

AU - Sawyer, Alan

AU - Trope, Yaacov

AU - Wertenbroch, Klaus

AU - Zauberman, Gal

PY - 2005/12

Y1 - 2005/12

N2 - 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.

AB - 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.

UR - http://www.scopus.com/inward/record.url?scp=32044464054&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=32044464054&partnerID=8YFLogxK

U2 - 10.1007/s11002-005-5897-x

DO - 10.1007/s11002-005-5897-x

M3 - Article

AN - SCOPUS:32044464054

VL - 16

SP - 347

EP - 360

JO - Marketing Letters

JF - Marketing Letters

SN - 0923-0645

IS - 3-4

ER -