The globalizability of temporal discounting

Abstract

Economic inequality is associated with extreme preferences for smaller, immediate gains over larger, delayed ones. This pattern, known as temporal discounting, may feed into rising global inequality, yet it is unclear if it is a function of choice preferences or norms, or rather the absence of sufficient resources to meet immediate needs. It is also not clear if these reflect true differences in choice patterns between income groups. We tested temporal discounting and five intertemporal choice anomalies using local currencies and value standards in 61 countries. Across a diverse sample of 13,629 participants, we found highly consistent rates of choice anomalies. Individuals with lower incomes were not significantly different, but economic inequality and broader financial circumstances impact population choice patterns.