APS
29th APS Annual Convention · 2017
When 1 + 10 Is Not Equal to 11: The Cancellation Heuristic in Intertemporal Choice
- Dawei Wang
Kellogg School of Management - Krishna Savani
Nanyang Business School
Abstract
We document a novel bias in intertemporal choice and its application to social security. We found that when a smaller sooner reward and a larger later reward are presented in a manner that allows people to cancel out a common amount, people ignore the common amount and compare the remainders.
Judgment and Decision Making
