Psychology and Aging · 1996 · 419 citations · 15 references
Social SciencesBehavioral SciencesPsychologyDevelopmental PsychologyGerontologyIndividual DifferencesAge DifferencesBehavioral Decision-makingCognitive AgingAge-related Decision Making DifferencesDelayed Reward ValuationDiscounted Utility ModelSubjective ValueYoung Adulthood
Temporal discounting refers to the decrease in the subjective value of a reward as the delay to its receipt increases. This study examined how age and income affect temporal discounting. Adults of different ages but similar income levels discounted delayed rewards at comparable rates, whereas adults of similar age but differing income levels discounted at different rates; specifically, lower‑income older adults discounted more steeply than upper‑income older adults or upper‑income younger adults, with no age differences among upper‑income groups, indicating that impulsivity declines rapidly in young adulthood and that age and income interact to shape decision‑making impulsivity.
This study examined the effects of age and income temporal discounting (i.e. the decrease in the subjective value of a reward as the delay to its receipt increases). The value of delayed hypothetical monetary rewards was discounted at similar rates by adults of different ages but similar income levels, but at different rates by adults of similar age but different income levels. Specifically, lower income older adults showed a greater degree of temporal discounting than did either upper income older adults or upper income younger adults, but there were no age differences in discounting between the upper income groups. Comparison of these findings with those of a previous study (Green, Fry, & Myerson, 1994) suggests that impulsivity in decision making declines rapidly in young adulthood, reaching stable levels in the 30s. Further, age and income appear to interact in determining the impulsivity of decision making by adults.
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