Money earlier or later? Simple heuristics explain intertemporal choices better than delay discounting does.
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ABSTRACT:
SUBMITTER: Ericson KM
PROVIDER: S-EPMC4516222 | biostudies-literature | 2015 Jun
REPOSITORIES: biostudies-literature
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Money earlier or later? Simple heuristics explain intertemporal choices better than delay discounting does.
Ericson Keith M Marzilli KM White John Myles JM Laibson David D Cohen Jonathan D JD
Psychological science 20150424 6
Heuristic models have been proposed for many domains involving choice. We conducted an out-of-sample, cross-validated comparison of heuristic models of intertemporal choice (which can account for many of the known intertemporal choice anomalies) and discounting models. Heuristic models outperformed traditional utility-discounting models, including models of exponential and hyperbolic discounting. The best-performing models predicted choices by using a weighted average of absolute differences and ...[more]
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