Motivational Influences in Time Discounting: The Effect of Regulatory Focus

In this research we examine the motivational influence of regulatory focus on revealed time preference. Drawing on regulatory focus research, we hypothesize an interaction effect between regulatory focus and valence such that, compared with prevention focus, promotion focus is associated with lower discount rate in the gain domain and a higher discount rate in the loss domain. This prediction was tested in three laboratory experiments where participants revealed their preference for intertemporal tradeoffs among hypothetical monetary rewards or payments. The data provide strong empirical support for the hypothesized interaction effect. These results highlight the importance of incorporating motivational influences in theoretical treatment of time discounting. The implications of the present research for the marketing of certain financial products that involve intertemporal tradeoffs (such as loans) are also discussed.