Age, time, and decision making: from processing speed to global time horizons

Abstract

Time and time perceptions are integral to decision making because any meaningful choice is embedded in a temporal context and requires the evaluation of future preferences and outcomes. The present review examines the influence of chronological age on time perceptions and horizons and discusses implications for decision making across the life span. Time influences and interacts with decision making in multiple ways. Specifically, this review examines the following topic areas: (1) processing speed and decision time, (2) internal clocks and time estimation, (3) mental representations of future time and intertemporal choice, and (4) global time horizons. For each aspect, patterns of age differences and implications for decision strategies and quality are discussed. The conclusion proposes frameworks to integrate different lines of research and identifies promising avenues for future inquiry.Time and perceptions of time are integral to decision making because any meaningful choice is embedded in a temporal context and requires the evaluation of future preferences and outcomes. Construals of temporal horizons inform not only mundane choices (such as those at the lunch counter) where decision outcomes are realized within minutes, but also complex interpersonal and career decisions that will influence life-trajectories for decades to come. Importantly, time is linked with decision making at multiple levels ranging from processing time and timing of the decision task itself (e.g., time pressure), to time as a characteristic of decision options (e.g., differences in duration or delay), and global time horizons on the part of the decision-maker 1,2 .In general, people are well-prepared to appreciate and navigate temporal aspects of decision making. In fact, it has been argued that the ability to monitor time and simulate future events are part of what makes us uniquely human 3,4 . Nevertheless, most people show systematic biases in time perceptions that may put them at risk for suboptimal decisions 5,6 . Further, although the awareness of time and its passing is a human universal 7 , time horizons and construals show considerable interindividual variability. Thus, some decision makers may be at greater risk for temporal fallacies than others.Based on these considerations, the present chapter reviews the influence of chronological age on time perceptions and horizons and discusses implications for decision making across the life span. As mentioned above, time influences and interacts with decision making in multiple ways and a complete coverage of age differences would go beyond the scope of the present chapter. Instead, I focus on select topics that have attracted sufficient life-span developmental research to allow for broader conclusions about the direction of age

Age Patterns in Mental Representations of Time: Underlying Constructs and Relevant Covariates

“…A growing body of research indicates that the way people perceive and structure their time and envision their future varies systematically across the adult life span (for reviews see Löckenhoff, 2011; McFadden & Atchley, 2001). These age-related shifts in mental representations of time have been linked to consequential outcomes including social partner preferences (Lang & Carstensen, 2002), financial decisions (Löckenhoff, O’Donoghue, & Dunning, 2011), and medical choices (Löckenhoff & Carstensen, 2007; Löckenhoff et al, 2013).…”

“…These age-related shifts in mental representations of time have been linked to consequential outcomes including social partner preferences (Lang & Carstensen, 2002), financial decisions (Löckenhoff, O’Donoghue, & Dunning, 2011), and medical choices (Löckenhoff & Carstensen, 2007; Löckenhoff et al, 2013). However, our current understanding of such effects is limited in several respects.…”

The role of user age in task performance: examining curvilinear and interaction effects of user age, expertise, and interface design on mistake making

“…This conclusion counters the conventional wisdom on age and computer use. Previous research demonstrates that mental faculties decline with age, and younger people are more proficient at ICT enabled tasks than older people, especially when using metrics for performance such as speed (Arning and Ziefle 2007;Löckenhoff 2011). Broadly speaking, the IS literature has found support for the younger user being faster and more confident in their use of ICT than older users.…”

Decision Making Across the Life Span

“…In spite of the age-related declines observed in the dopamine system and the striatum, it may be that gradual declines in the dopamine system with age do not disrupt the slow changes in associative learning from repeated experience with delayed rewards over decades of the life course. This experience with the realization of delayed rewards is highly relevant for making intertemporal decisions, as one has to make predictions about the future value of various courses of action at the time of choice (Löckenhoff, 2011;Löckenhoff et al, 2011).…”

“…A growing body of prior research has shown that older adults are often more likely to wait for larger, temporally delayed rewards (Löckenhoff, 2011). For the relatively short time delays (seconds to weeks) used in these studies, older adults show reduced discounting of time delays.…”