Hyperbolic Discounting and Self-Destructive Behaviors

  • Shinsuke Ikeda
Part of the Advances in Japanese Business and Economics book series (AJBE, volume 10)


In the previous chapter, I explained that people’s degrees of impatience are affected by various choice conditions and frames, all of which cause a variety of anomalous phenomena in their intertemporal choices and behaviors that traditional economics cannot explain. In this chapter, I shall deal with hyperbolic discounting or present bias. As explained in Chap.  1, under hyperbolic discounting, more immediate gratifications are discounted at higher discount rates, and people are less patient in waiting for less delayed rewards.


Discount Rate Discount Function Hyperbolic Discount Time Discount Exponential Discount 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. Ainslie, G. W. (1974). Impulse control in pigeons. Journal of the Experimental Analysis of Behavior, 21(3), 485–489.CrossRefGoogle Scholar
  2. Figner, B., Knoch, D., Johnson, E. J., Krosch, A. R., Lisanby, S. H., Fehr, E., & Weber, E. U. (2010). Lateral prefrontal cortex and self-control in intertemporal choice. Nature Neuroscience, 13, 538–539.CrossRefGoogle Scholar
  3. Frederick, S. G., Loewenstein, G., & O’Donoghue, T. (2002). Time discounting and time preference: A critical review. Journal of Economic Literature, 40(2), 351–401.CrossRefGoogle Scholar
  4. Glimcher, P. W., Kable, J., & Louie, K. (2007). Neuroeconomic studies of impulsivity: Now or just as soon as possible? American Economic Review, 97(2), 142–147.CrossRefGoogle Scholar
  5. Hariri, A. R., Brown, S. M., Williamson, D. E., Flory, J. D., de Wit, H., & Manuck, S. B. (2006). Preference for immediate over delayed rewards is associated with magnitude of ventral striatal activity. Journal of Neuroscience, 26(51), 13213–13217.CrossRefGoogle Scholar
  6. Herrnstein, R. J. (1961). Relative and absolute strengths of response as a function of frequency of reinforcement. Journal of the Experimental Analysis of Behavior, 4(3), 267–272.CrossRefGoogle Scholar
  7. Ikeda, I., Ohtake, F., & Tsutsui, Y. (2005). Time-discount rates: Investigation based on economic experiments and questionnaire survey (Osaka University ISER Discussion Paper No. 638). (in Japanese).Google Scholar
  8. Kable, J. W., & Glimcher, P. W. (2007). The neural correlates of subjective value during intertemporal choice. Nature Neuroscience, 10(12), 1625–1633.CrossRefGoogle Scholar
  9. Kable, J. W., & Glimcher, P. W. (2010). An “as soon as possible” effect in human intertemporal decision making: Behavioral evidence and neural mechanisms. Journal of Neurophysiology, 103(5), 2513–2531.CrossRefGoogle Scholar
  10. Keren, G., & Roelofsma, P. (1995). Immediacy and certainty in intertemporal choice. Organizational Behavior and Human Decision Processes, 63(3), 287–297.CrossRefGoogle Scholar
  11. Kim, B. K., & Zauberman, G. (2009). Perception of anticipatory time in temporal discounting. Journal of Neuroscience, Psychology, and Economics, 2(2), 91–101.CrossRefGoogle Scholar
  12. Loewenstein, G., & Prelec, D. (1992). Anomalies in intertemporal choice: Evidence and an interpretation. Quarterly Journal of Economics, 107(2), 573–597.CrossRefGoogle Scholar
  13. Loewenstein, G., Rick, S., & Cohen, J. D. (2008). Neuroeconomics. Annual Review of Psychology, 59, 647–672.CrossRefGoogle Scholar
  14. Matthews, L. R., & Temple, W. (1979). Concurrent schedule assessment of food preference in cows. Journal of the Experimental Analysis and Behavior, 32(2), 245–254.CrossRefGoogle Scholar
  15. Mazur, J. E. (1987). An adjusting procedure for studying delayed reinforcement. In M. L. Commons, J. E. Mazur, J. A. Navin, & H. Rachlin (Eds.), Quantitative analyses of behavior: The effect of delay and of intervening events on reinforcement value (Vol. 5, pp. 55–73). Hillsdale: Erlbaum.Google Scholar
  16. McClure, S. M., Laibson, D. I., Loewenstein, G., & Cohen, J. D. (2004). Separate neural systems value immediate and delayed monetary rewards. Science, 306(5695), 503–507.CrossRefGoogle Scholar
  17. McClure, S. M., Ericson, K. M., Laibson, D. I., Loewenstein, G., & Cohen, J. D. (2007). Time discounting for primary rewards. Journal of Neurosceince, 27(21), 5796–5804.CrossRefGoogle Scholar
  18. Ozdenoren, E., Salant, S. W., & Silverman, D. (2012). Willpower and the optimal control of visceral urges. Journal of the European Economic Association, 10(2), 342–368.CrossRefGoogle Scholar
  19. Peters, J. (2011). The role of the medical orbitofrontal cortex in intertemporal choice: Prospection or valuation? Journal of Neuroscience, 31(16), 5889–5890.CrossRefGoogle Scholar
  20. Roelofsma, P. H. M. P. (1996). Modelling intertemporal choices: An anomaly approach. Acta Psychologica, 93(1), 5–22.CrossRefGoogle Scholar
  21. Samuelson, P. A. (1976). Speeding up of time with age in recognition of life as fleeting. In A. M. Tang, F. M. Westfield, & J. S. Worley (Eds.), Evolution, welfare, and time in economics: Essays in honor of Nicholas Georgescu-Roegen. Lexington: Lexington Books.Google Scholar
  22. Sato, R. (2015). Dynamic analysis and subjective time. Mimeo.Google Scholar
  23. Sato, R., & Ramachandran, R. V. (2014). Symmetry and economic invariance (2nd Enhanced edition). Tokyo: Springer Japan.Google Scholar
  24. Sellitto, M., Ciaramelli, E., & di Pellegrino, G. (2010). Myopic discounting of future rewards after medial orbitofrontal damage in humans. Journal of Neuroscience, 30(49), 16429–16436.CrossRefGoogle Scholar
  25. Takahashi, T. (2005). Loss of self-control in intertemporal choice may be attributable to logarithmic time-perception. Medical Hypotheses, 65(4), 691–693.CrossRefGoogle Scholar
  26. Tanaka, S. C., Doya, K., Okada, G., Ueda, K., Okamoto, Y., & Yamazaki, S. (2004). Prediction of immediate and future rewards differentially recruits cortico-basal ganglia loops. Nature Neuroscience, 7(8), 887–893.CrossRefGoogle Scholar
  27. Uzawa, H. (1968). Time preference, the consumption function and optimum asset holdings. In J. N. Wolfe (Ed.), Value capital and growth: Papers in honour of Sir John Hicks (pp. 485–504). Chicago: Aldine.Google Scholar
  28. Woolverton, W. L., & Alling, K. (1999). Choice under concurrent VI schedules: Comparison of behavior maintained by cocaine or food. Psychopharmacology, 141(1), 47–56.CrossRefGoogle Scholar
  29. Zauberman, G., Kim, B. K., Malkoc, S., & Bettman, J. R. (2009). Discounting time and time discounting: Subjective time perception and intertemporal preferences. Journal of Marketing Research, 46(4), 543–556.CrossRefGoogle Scholar

Copyright information

© Springer Japan 2016

Authors and Affiliations

  • Shinsuke Ikeda
    • 1
  1. 1.Institute of Social and Economic ResearchOsaka UniversityIbarakiJapan

Personalised recommendations