Time Discounts all Wounds

Slide 1

Time Discounts all Wounds

M.K. StevensonJuan CabreraRaymond Gerardo

Are Gains and Losses discounted differently when presented together as a single stimulus option in a judgment task?

How would the discounted Gains and Losses compare to Gains presented alone and Losses presented alone in a judgment task?Previous research has indicated that gains are discounted at different rates than losses when presented alone. 3You receive a loan for $1000 in 1 mo.You pay $200 and it is due in 1 year.I-----------------------------I-----------------------------IVERY INDIFFERENT VERYUnattractive Attractive

Loans range from $1000 to $5000.Time ranges from 1 mo to 4 years.Interest to Pay ranges from $200 to $800

InterestLoan Amount$200due1 mos$200due1 yr$200due4 yrs$800due1 mo$800due1 yr$800due4 yrs$10001 mos$10001 yr$10004 yrs$50001 mo$50001 yr$50004 yrs45You receive a loan for $1000 in 6 mos.I-----------------------------I-----------------------------IVERY INDIFFERENT VERYUnattractive Attractive

Loans range from $1000 to $3000.Time ranges from 1 mo to 4 years.Loan Amt$1000$3000$50001 mo6 mos1 yr4 yrs56 You must pay $600 and it is due in 6 mos. I-----------------------------I-----------------------------IVERY INDIFFERENT VERYUnattractive Attractive

Time ranges from 1 mo to 4 years.Interest to Pay ranges from $200 to $500

InterestPayment$200$600$8001 mo6 mos1 yr4 yrs67Model

Assumes that gains and losses are additive or averaged.

Assumes the delay weights the events.

8 Gains presented alone may have different discount weights than when they are presented with losses.

9

Losses presented alone may have different discount weights than losses presented with gains.

Previous Results (2011)

Would changing the response scale affect the focus of the response ?

How attractive is the option ?

How unattractive is this option?

Positive Response Scale

Negative Response Scale Are Gains and Losses discounted differently when presented together in a preference task?

How do the discounting functions of the combined stimuli compare to gains and losses presented alone?

A B Receive $ 1000 loan. Receive $ 3000 loan. for 6 mos For 4 years Pay $ 200 interest. Pay $ 600 interest. in 1 year in 6 mos.

I-----------------------------------I----------------------------------I Prefer A prefer Prefer B Very Much them Very Much More Equally More

Preference Strength ScaleTime varies from 6 mos to 4 years Loans vary from $1000 to $3000 Interest varies from $200 to $6001919 AInterestLoan

$200

6 mos$200

4 yrs$800

6 mos$800

4 yrs BInterestLoan$400

1 yr$400

2 yrs$10006 mos$20001 yr$10004 yrs $20002 yrs$50006 mos$50004 yrsDesign 5 and 6 (Choose A or B. How much better is it? (Choose A or B Which one is worse? )20 A B Receive $ 1000 loan. Receive $ 3000 loan. for 6 mos For 4 years

I-----------------------------------I----------------------------------I Prefer A prefer Prefer B Very Much them Very Much More Equally More

Positive Preference Strength ScaleTime varies from 6 mos to 4 years Loans vary from $1000 to $3000

2121 A

Loan

$1000$5000 B

Loan$2000$40001 mos6 mos4 yrs1 yrDesign 7 & 8 (Choose A or B. How much better is it?) (Choose A or B Which one is worse? )

22 A B Pay $ 200 interest. Pay $ 600 interest. in 1 year in 6 mos.

I-----------------------------------I----------------------------------I Prefer A prefer Prefer B Very Much them Very Much More Equally More

Positive Preference Strength ScaleTime varies from 6 mos to 4 yearsInterest to pay varies from $200 to $6002323 AInterest to Pay$200$600$800 BInterest to Pay$400$7001 mos6 mos1 yr2 yrs4 yrsDesign 9 & 10 (Choose A or B. How much better is it?) (Choose A or B Which one is worse? )

2425Model

AInterestLoan

$200

6 mos$200

4 yrs$600

6 mos$600

4 yrs BInterestLoan$400

1 yr$400

2 yrs$10006 mos$20001 yr$10004 yrs $20002 yrs$50006 mos$50004 yrsDesign 5 and 6 (Choose A or B. How much better is it? (Choose A or B Which one is worse? )26

AInterestLoan

6 mos4 yrs$1000

$5000

Design 5 and 6 (Choose A or B. How much better is it? (Choose A or B Which one is worse? )27

Would changing the response scale affect the focus of the response ?

Which option is better ? How much better is it?

Which option is worse? How much worse is t?

A B Receive $ 1000 loan. Receive $ 3000 loan. for 6 mos For 4 years Pay $ 200 interest. Pay $ 600 interest. in 1 year in 6 mos.

I-----------------------------------I----------------------------------I A is they B is Much are Much Worse Equal Worse

Negative Preference Strength ScaleTime varies from 6 mos to 4 years Loans vary from $1000 to $3000 Interest varies from $200 to $6003131

Are Gains and Losses discounted differently when presented together in a judgment task?

Yes, participants can discount gains and losses differently when they are combined.

How does the discounted Gains and Losses compare to Gains presented alone and Losses presented alone in a judgment task?

Losses are weighted higher with or without gains and discounted more steeply in both contexts using a positive scale.

With a negative scale, shorter losses are weight higher than delayed gains.Losses are discounted more steeply in both contexts using a negative scale.

ContextAre Gains and Losses discounted differently when presented together in a preference task?

Discount weights are different for gains and losses presented alone and when presented together. Gains are preferred sooner. Losses are preferred later. Outcome X Time Interactions are reliable.

The Sign X Time interaction is significant for single outcomes regardless of the response scale focus for gains and losses presented alone.

But the Sign X Time interaction is not reliable for gains and losses presented together for either response scale. There is a focus on Gains when comparing what is better. There is a focus on Losses when comparing which option is worse.