The hidden opportunity cost of time effect on intertemporal choice.
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ABSTRACT:
SUBMITTER: Zhao CX
PROVIDER: S-EPMC4376061 | biostudies-literature | 2015
REPOSITORIES: biostudies-literature
Publications
The hidden opportunity cost of time effect on intertemporal choice.
Zhao Cui-Xia CX Jiang Cheng-Ming CM Zhou Lei L Li Shu S Rao Li-Lin LL Zheng Rui R
Frontiers in psychology 20150327
An interesting phenomenon called "hidden opportunity cost of time effect" was detected in intertemporal choices. The majority of our participants preferred the smaller but sooner (SS) option to the larger but later (LL) option if opportunity cost was explicit. However, a higher proportion of participants preferred the LL to SS option if opportunity cost was hidden. This shift violates the invariance principle and opens a new way to encourage future-oriented behavior. By simply mentioning the "ob ...[more]
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