Good or Bad, We Want it Now: Fixed-Cost Present Bias for Gains and Losses Explains Magnitude Asymmetries in Intertemporal Choice

@inproceedings{Hardisty2012GoodOB,
  title={Good or Bad, We Want it Now: Fixed-Cost Present Bias for Gains and Losses Explains Magnitude Asymmetries in Intertemporal Choice},
  author={David J. Hardisty and Kirstin Caroline Appelt and Elke U. Weber},
  year={2012}
}
Intertemporal tradeoffs are ubiquitous in decision making, yet preferences for current versus future losses are rarely explored in empirical research. Whereas rational-economic theory posits that neither outcome sign (gains vs. losses) nor outcome magnitude (small vs. large) should affect delay discount rates, both do, and moreover, they interact: in three studies, we show that whereas large gains are discounted less than small gains, large losses are discounted more than small losses. This… CONTINUE READING

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