Subjective Time Perception and Temporal Discounting

Gal Zauberman, University of Pennsylvania
James Bettman, Duke University
Selin A. Malkoc, University of Minnesota
B. Kyu Kim, University of Pennsylvania
In this work we explore the effect of time perception in preferences over time. We suggest that people are relatively insensitive to changes in objective time horizon and that this insensitivity alone leads to a declining rate of discounting with increased time intervals (i.e., hyperbolic discounting). Results from three studies show that the subjective estimates of time horizon are significantly more compressed relative to objective time. When discount rate is calculated using the subjective estimates of duration rather than actual duration, discounting is no longer hyperbolic.
[ to cite ]:
Gal Zauberman, James Bettman, Selin A. Malkoc, and B. Kyu Kim (2008) ,"Subjective Time Perception and Temporal Discounting", in NA - Advances in Consumer Research Volume 35, eds. Angela Y. Lee and Dilip Soman, Duluth, MN : Association for Consumer Research, Pages: 154-156.