Cited by 591Decision-Making and Behavioral EconomicsExperimental Behavioral Economics StudiesNeural and Behavioral Psychology Studies

Preference Reversals Due to Myopic Discounting of Delayed Reward

Kirby, Kris N., Herrnstein, R.J.·1995·Psychological Science

Abstract

A basic stationarity axiom of economic theory assumes stable preference between two deferred goods separated by a fixed time To test this assumption, we offered subjects choices between delayed rewards, while manipulating the delays to those rewards Preferences typically reversed with changes in delay, as predicted by hyperbolic discounting models of impulsiveness Of 36 subjects, 34 reversed preference from a larger, later reward to a smaller, earlier reward as the delays to both rewards decreased We conclude that the stationarity axiom is not appropriate in models of human choice

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Crossref · 10.1111/j.1467-9280.1995.tb00311.x

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34 of 34 references verified0 citation errors · 0 not checkable

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  • Hyperbolic discounting helps explain violations of the stationarity axiom: preference for larger-later rewards when smaller-sooner rewards are unavailable reverses when the smaller-sooner reward is immediately accessible.

    “The hyperbolic shape of the discounting function also helps to explain the previously mentioned violations of the stationarity axiom in economics (Strotz, 1955); i.e., the tendency to prefer LLRs when SSRs are not readily available, and to reverse this preference when the SSR is immediately accessible.”

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Authors
Kirby, K. N., & Herrnstein, R. J.
Affiliations
  • Williams College (US)
  • Harvard University (US)
Corresponding author
Kirby, Kris N.
Venue
Psychological Science
Published
1995-03
Volume
6
Issue
2
Pages
83-89
ISSN
  • 0956-7976 (ISSN-L)
  • 1467-9280
OpenAlex
W2135574561
Cited by
591
References
32
Citations by year
2026: 11 · 2025: 30 · 2024: 5 · 2023: 14 · 2022: 21 · 2021: 17 · 2020: 21 · 2019: 24 · 2018: 28 · 2017: 21 · 2016: 23 · 2015: 23 · 2014: 26 · 2013: 34 · 2012: 26
FWCI
6.46
Type
journal article
Language
en
Open access
closed
Locations
Psychological Science (publishedVersion)
Topics
  • Social Sciences › Decision Sciences › General Decision Sciences › Decision-Making and Behavioral Economics
  • Social Sciences › Safety Research › Experimental Behavioral Economics Studies
  • Life Sciences › Neuroscience › Cognitive Neuroscience › Neural and Behavioral Psychology Studies
Keywords
preference reversal, hyperbolic discounting, delayed rewards, impulsivity, time preference, intertemporal choice, delay sensitivity

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