トップEージ

Quasi-Hyperbolic Discounting and Self-Control Problem

Fumihiko Hiruma
Waseda University

Time-inconsistent behavior or impulsive behavior caused by present-biased preference incurs huge economic cost to society as a whole as well as an individual.  This paper explains this anomalous behavior in terms of quasi-hyperbolic discounting, and discusses the usefulness of self-control as a means of restraining the impulsive behavior.  Self-control problem fits the dual self system to assume 2 selves; one to restrain, the other to be restrained. This interpretation is consistent to “dual system” model of cognition and brain in the field of Cognitive Neuroscience.  In this paper, I treated cognitive ability and personality as substitute variables for self-control, based on some results of recent studies, and conducted some statistical analysis on the relationship between the time discount rate and cognitive ability and personality, using a survey data. I found the interval effect that the time discount rate decreases as the time interval between earlier and later options lengthens. I also verified that the time discount rate had a negative relation with cognitive ability at the 1% significant level, but none with personality variables. The negative relation between the time discount rate and cognitive ability could imply that cognitive ability exerts self-control to lower the time discount rate. Lastly, I also discussed another possible interpretation of the result from the point of “unitary system” model that interprets brain as an unified network of information processing, not as the dual self system.

→Japanese Ver.

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