Time matters less when outcomes differ: uni-modal versus cross-modal comparisons in intertemporal choice

Cubitt, Robin P.; McDonald, Rebecca; Read, Daniel

Abstract

Uni-modal intertemporal decisions involve comparing options of the same type (e.g. apples now versus apples later), and cross-modal decisions involve comparing options of different types (e.g. a car now versus a vacation later). As we explain, existing models of intertemporal choice do not allow time preference to depend on whether the comparisons to be made are uni-modal or cross-modal. We test this restriction in an experiment using the delayed-compensation method, a new extension of the standard method of eliciting intertemporal preferences that allows for assessment of time preference for non-monetary and discrete outcomes, as well as for both cross-modal and uni-modal comparisons. Participants were much more averse to delay for uni-modal than cross-modal decisions. We provide two potential explanations for this effect: one drawing on multi-attribute choice, the other drawing on construal level theory.

Citation

Cubitt, R. P., McDonald, R., & Read, D. (2018). Time matters less when outcomes differ: uni-modal versus cross-modal comparisons in intertemporal choice. Management Science, 64(2), https://doi.org/10.1287/mnsc.2016.2613

• Journal Article Type: Article
• Acceptance Date: Apr 27, 2016
• Online Publication Date: Feb 16, 2017
• Publication Date: Feb 28, 2018
• Deposit Date: Jul 4, 2016
• Publicly Available Date: Feb 16, 2017
• Journal: Management Science
• Print ISSN: 0025-1909
• Electronic ISSN: 1526-5501
• Publisher: INFORMS
• Peer Reviewed: Peer Reviewed
• Volume: 64
• Issue: 2
• DOI: https://doi.org/10.1287/mnsc.2016.2613
• Public URL: https://nottingham-repository.worktribe.com/output/917018
• Publisher URL: http://pubsonline.informs.org/doi/10.1287/mnsc.2016.2613
• Related Public URLs: http://pubsonline.informs.org/journal/mnsc
• Contract Date: Jul 4, 2016