The Psychology of Intertemporal Preferences

Blackwell Handbook of Judgment and Decision Making, George Wu and Gideon Keren (eds), Wiley-Blackwell, Forthcoming

50 Pages Posted: 18 Feb 2016

See all articles by Oleg Urminsky

Oleg Urminsky

University of Chicago - Booth School of Business

Gal Zauberman

Yale

Date Written: 2016

Abstract

The focus in this chapter is on the psychological foundation of intertemporal decisions and the consequences for people’s decisions and behaviors. Rather than simply update the numerous excellent past reviews with a focus on the discounting phenomena, the emphasis in this chapter is on recent developments in uncovering the psychology underlying intertemporal preferences, understanding differences in discount rates across people and contexts, and using discounting to understand a broad range of intertemporal decisions and behaviors. The current chapter will therefore mainly focus on recent empirical findings with an emphasis on the psychological mechanisms underlying these findings. In particular, we examine the basic effects in the context of the different psychological mechanisms proposed in the literature. We conclude by pointing to open questions and the need to better map the match between the multiple psychological drivers and the types of intertemporal decisions they predominantly govern.

Suggested Citation

Urminsky, Oleg and Zauberman, Gal, The Psychology of Intertemporal Preferences (2016). Blackwell Handbook of Judgment and Decision Making, George Wu and Gideon Keren (eds), Wiley-Blackwell, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2733286

Oleg Urminsky (Contact Author)

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

Gal Zauberman

Yale ( email )

165 Whitney Avenue
New Haven, CT 06511
United States

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