Behavioral and Brain Sciences



Open Peer Commentary

Is the evidence for hyperbolic discounting in humans just an experimental artefact?


Glenn W. Harrison a1 and Morten Igel Lau a2
a1 Department of Economics, College of Business Administration, University of Central Florida, Orlando, Florida 32816-1400 Glenn.Harrison@bus.ucf.edu http://www.bus.ucf.edu/gharrison
a2 Centre for Economic and Business Research, Copenhagen Business School, DK-2000 Frederiksberg, Denmark mol@cebr.dk http://www.cebr.dk/mol

Abstract

We question the behavioral premise underlying Ainslie's claims about hyperbolic discounting theory. The alleged evidence for humans can be easily explained as an artefact of experimental procedures that do not control for the credibility of payment over different time horizons. In appropriately controlled and financially motivated settings, human behavior is consistent with conventional exponential preferences.