Discount Rates For Time Versus Dates: the Sensitivity of Discounting to Time-Interval Description

Robyn LeBoeuf, University of Florida

Discount Rates for Time Versus Dates: The Sensitivity of Discounting to Time-Interval Description

Robyn A. LeBoeuf, University of Florida

 

This research examines the impact of time-interval description on consumers’ discount rates.  An initial study shows that consumers demand more money to delay income for a given time interval when that interval is described by an extent of time than when it is described by dates.  This heightened discounting under extent-based (compared to date-based) descriptions also manifests when consumers specify their own waiting times, when they choose among investments, and when they postpone debts.  Additional results suggest that this pattern arises because time intervals are perceived as longer when described by extent than when described by dates.
[ to cite ]:
Robyn LeBoeuf (2006) ,"Discount Rates For Time Versus Dates: the Sensitivity of Discounting to Time-Interval Description", in NA - Advances in Consumer Research Volume 33, eds. Connie Pechmann and Linda Price, Duluth, MN : Association for Consumer Research, Pages: 138-138.