The evolution of hyperbolic discounting: Implications for truly social valuation of the future

We explore the standard expected utility model and alternatives to it. We then examine the behavioral and neurological evidence for hyperbolic discounting. We discuss evidence related to the neurological and behavioral evolution of discounting in non-human animals and in humans. We explore new findi...

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Bibliographic Details
Published in:Journal of economic behavior & organization 2013-06, Vol.90, p.S94-S104
Main Authors: Gowdy, John, Rosser, J. Barkley, Roy, Loraine
Format: Article
Language:English
Subjects:
Behavior
Behavioral evolution
Discounted utility
Expected utility
Hernnstein's matching law
Hyperbolic discounting
Neuroeconomics
Neuropsychology
Social time preference
Sociology
Studies
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Summary:We explore the standard expected utility model and alternatives to it. We then examine the behavioral and neurological evidence for hyperbolic discounting. We discuss evidence related to the neurological and behavioral evolution of discounting in non-human animals and in humans. We explore new findings about the importance of sociality in human behavior and the implications for truly social time preference. Finally, we discuss the implications of the neurological evidence on discounting for social environmental valuation, in particular the implications for very long-run decisions such as those involved in climate change mitigation and biodiversity preservation.
ISSN:0167-2681
1879-1751
DOI:10.1016/j.jebo.2012.12.013