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Discounting of Future Returns

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  • First Online:
Encyclopedia of Evolutionary Psychological Science

  • 32 Accesses

Synonyms

Delayed discounting; Temporal discounting

Definition

The decrease of perceived value of a particular item as time passes.

Introduction

All types of organisms are constantly making choices throughout their lives. Some of these choices are simple, with one alternative clearly better than the other. However, other choices that must be made are less clear-cut. When human beings and other organisms make decisions, how do they actually analyze and decide between two alternatives? When faced with the choice between two items that differ only on one factor, individuals should pick a larger value over a smaller value, a reward available sooner over a reward available later, and a more certain reward over a less certain reward (Green and Myerson 2004). These are the basics that determine how organisms make the best possible choices. Nevertheless, this only explains one simple type of choice; in reality, most choices are much more complex and differ on many factors. When multiple...

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References

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Author information

Authors and Affiliations

  1. Fort Hays State University, Hays, KS, USA

    Arianne Fisher, Adam J. Armijo & W. Trey Hill

  2. Department of Psychology, Wichita State University, 1845 Fairmount St, Wichita, KS, 67260, USA

    Adam J. Armijo

Authors
  1. Arianne Fisher
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  2. Adam J. Armijo
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  3. W. Trey Hill
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Corresponding author

Correspondence to Adam J. Armijo .

Editor information

Editors and Affiliations

  1. Oakland Univ Dept of Psycholgy, Rochester, Michigan, USA

    Viviana Weekes-Shackelford

  2. Department of Psychology, Oakland University, Rochester, Michigan, USA

    Todd K. Shackelford

  3. Rochester, Michigan, USA

    Viviana A. Weekes-Shackelford

Section Editor information

  1. Department of Psychological Sciences, Kansas State University, 492 Bluemont Hall, Manhattan, KS, USA

    Gary L Brase

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© 2016 Springer International Publishing AG

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Fisher, A., Armijo, A.J., Hill, W.T. (2016). Discounting of Future Returns. In: Weekes-Shackelford, V., Shackelford, T., Weekes-Shackelford, V. (eds) Encyclopedia of Evolutionary Psychological Science. Springer, Cham. https://doi.org/10.1007/978-3-319-16999-6_1939-1

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  • DOI: https://doi.org/10.1007/978-3-319-16999-6_1939-1

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  • Publisher Name: Springer, Cham

  • Online ISBN: 978-3-319-16999-6

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