Inconsistency and Subjective Time Dilation Perception in Intertemporal Decision Making

Abstract

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A large number of studies have demonstrated that intertemporal decision making process usually results in preferences that reverse over time, or choices that are inconsistent over time. Inconsistency can be explained by different discount models by the effect of reward value perception at different moments. Otherwise, one can also understand inconsistency as the result of the time perception effect. Here, we address inconsistency as the result of a subjective time dilation perception effect. We use arguments inspired by the special theory of relativity and focused our study on a generalized model that encompasses psychophysical effects on time perception, where we look for a transformation of the time interval between the pay times of two rewards. Additionally, we present a generalized two-argument hyperbolic utility function for the Bernoulli (logarithmic) one, associating their difference to subjective time intervals.

Keywords

• econophysics
• psychophysics
• intertemporal decision making
• inconsistency
• time perception
• generalized models