Percent framing attenuates the magnitude effect in a preference-matching task of intertemporal choice.

ABSTRACT: Research in intertemporal decisions shows that people value future gains less than equivalent but immediate gains by a factor known as the discount rate (i.e., people want a premium for waiting to receive a reward). A robust phenomenon in intertemporal decisions is the finding that the discount rate is larger for small gains than for large gains, termed the magnitude effect. However, the psychological underpinnings of this effect are not yet fully understood. One explanation proposes that intertemporal choices are driven by comparisons of features of the present and future choice options (e.g., information on rewards). According to this explanation, the hypothesis is that the magnitude effect is stronger when the absolute difference between present and future rewards is emphasized, compare

SUBMITTER: Anvari F 

PROVIDER: S-EPMC8786190 | biostudies-literature | 2022

REPOSITORIES: biostudies-literature