Abstract
Insufficient resources are associated with negative consequences including decreased valuation of future reinforcers. To determine if these effects result from scarcity, we examined the consequences of acute, abrupt changes in resource availability on delay discounting—the subjective devaluation of rewards as delay to receipt increases. In the current study, 599 individuals recruited from Amazon Mechanical Turk read a narrative of a sudden change (positive, neutral, or negative) to one’s hypothetical future income and completed a delay discounting task examining future and past monetary gains and losses. The effects of the explicit zero procedure, a framing manipulation, was also examined. Negative income shock significantly increased discounting rates for gains and loses occurring both in the future and the past. Positive income windfalls significantly decreased discounting to a lesser extent. The framing procedure significantly reduced discounting under all conditions. Negative income shocks may result in short-term choices.
Highlights
The psychological consequences of scarce resources endemic to poverty are of growing scientific and societal importance [1, 2]
Six hundred participants were targeted for enrollment via Amazon Mechanical Turk
We showed for the first time that reading a narrative describing abrupt negative income shock increases discount rate, relative to a positive or neutral narrative, for both past and future monetary gains and losses
Summary
The psychological consequences of scarce resources endemic to poverty are of growing scientific and societal importance [1, 2]. Research findings suggest that a lack of resources along with the stress associated with scarcity may shift attention toward short-term needs, even at the expense of longer-term goals. Relative preference for immediate vs longer-term reinforcers can be understood through the process of delay discounting, which refers to the devaluation of reinforcers as a function of the delay to their receipt. Considerable evidence supports an association between poverty and greater discounting of delayed rewards (see [3], for a review, [4]). This correlation between poverty and greater delay discounting has been well established, interpreting this relationship can be challenging. A preexisting preference for the short-term could result in choices that lead to poverty or, alternatively, poverty may produce a constriction of time preferences and reduce the valuation of future opportunities [2]
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
