Auditory Cues, Temporal Attention, and Intertemporal Choices

49 Pages Posted: 13 Sep 2021 Last revised: 28 Oct 2023

See all articles by William Bazley

William Bazley

University of Kansas

Carina Cuculiza

Oklahoma State University - Stillwater - Spears School of Business

Kevin Pisciotta

University of Kansas - School of Business

Date Written: October 28, 2023

Abstract

Individuals are likely to make their financial decisions in environments that contain auditory stimuli. Notably, auditory stimuli can affect people's behaviors through influencing their attention. We experimentally show that auditory stimuli can affect individuals' temporal attention, which influences their preferences over intertemporal monetary payouts. Specifically, individuals whose temporal attention has been auditorily influenced to be on the near term apply higher subjective discount rates compared with counterfactual participants. Our findings highlight that acoustic cues in households' decision environments have the potential to affect their attentional focus, which has implications for a fundamental preference primitive that underpins financial decision-making.

Keywords: Behavioral finance, household finance, mindfulness, time preferences.

JEL Classification: G11, G40, G41, G50

Suggested Citation

Bazley, William and Cuculiza, Carina and Pisciotta, Kevin, Auditory Cues, Temporal Attention, and Intertemporal Choices (October 28, 2023). Available at SSRN: https://ssrn.com/abstract=3921871 or http://dx.doi.org/10.2139/ssrn.3921871

William Bazley (Contact Author)

University of Kansas ( email )

3143 Capitol Federal Hall
1654 Naismith Drive
Lawrence, KS 66045
United States

Carina Cuculiza

Oklahoma State University - Stillwater - Spears School of Business ( email )

201 Business
Stillwater, OK 74078-0555
United States

Kevin Pisciotta

University of Kansas - School of Business ( email )

Capital Federal Hall
1654 Naismith Dr
Lawrence, KS 66045
United States

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