Visual attention and time preference reversals

Abstract

Time preference reversal refers to systematic inconsistencies between preferences and bids for intertemporal options. From the two eye-tracking studies (N1 = 60, N2 = 110), we examined the underlying mechanisms of time preference reversal. We replicated the reversal effect in which individuals facing a pair of intertemporal options choose the smaller-sooner option but assign a higher value to the larger-later one. Results revealed that the mean fixation duration and the proportion of gaze time on the outcome attribute varied across the choice and bid tasks. In addition, time preference reversals correlated with individual differences in maximizing tendencies. Findings support the contingent weighting hypothesis and strategy compatibility hypothesis and allow for improved theoretical understanding of the potential mechanisms and processes involved in time preference reversals.

Keywords

• time preference reversal
• eye-tracking
• attention allocation
• contingent weighting hypothesis
• strategy compatibility hypothesis