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 Vol. 90; pp. S94 - S104
Main Authors:	Gowdy, John, Rosser, J. Barkley, Roy, Loraine
Format:	Journal Article
Language:	English
Published:	Amsterdam Elsevier B.V 01-06-2013 Elsevier Sequoia S.A
Subjects:	Behavior Behavioral evolution Discounted utility Expected utility Hernnstein's matching law Hyperbolic discounting Neuroeconomics Neuropsychology Social time preference Sociology Studies D87 Behavioral evolution Neuroeconomics Discounted utility Social time preference Hernnstein's matching law Hyperbolic discounting D03 H43 D90 D60
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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