Discounting a Lump-Sum Versus a Payment Stream: More Payments Leads to More Patience

• In Event: 6.6 Time, Discounting, and the Consumer Experience

Short Abstract

Many consumer outcomes involve payment streams (e.g., paychecks) and lump-sum payments. We demonstrate that these outcomes are processed differently and payments streams lead to more patience and less present bias than an equivalent lump-sum. These findings identify an important way to decrease impatience and de-bias a common choice anomaly.

Authors

• Selin A. Malkoc, Ohio State University, USA

• Joseph K Goodman, Ohio State University, USA

• Mosi Rosenboim, Ben Gurion University, Israel