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Questions and Answers
The Common Difference Effect states that discount rates are higher for larger time periods compared to shorter ones.
The Common Difference Effect states that discount rates are higher for larger time periods compared to shorter ones.
False (B)
The Absolute Magnitude Effect shows that smaller rewards are discounted less than larger rewards.
The Absolute Magnitude Effect shows that smaller rewards are discounted less than larger rewards.
True (A)
The Gain-Loss asymmetry suggests that discount rates are higher for losses compared to gains.
The Gain-Loss asymmetry suggests that discount rates are higher for losses compared to gains.
False (B)
Subjects preferred a delayed loss over an immediate loss of equal value.
Subjects preferred a delayed loss over an immediate loss of equal value.
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The Delay-Speedup asymmetry implies that decisions involving delaying rewards have lower discount rates than those involving speeding-up rewards.
The Delay-Speedup asymmetry implies that decisions involving delaying rewards have lower discount rates than those involving speeding-up rewards.
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