What is the definition of risky intertemporal choice? How to measure it?

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Definition of Risky Intertemporal Choice

Risky intertemporal choice involves making decisions that require individuals to evaluate the trade-offs between uncertain outcomes occurring at different points in time. This type of decision-making combines elements of risk (uncertainty about outcomes) with intertemporal considerations (delayed rewards), often leading to preferences for immediate gratification despite potential long-term consequences.

Measuring Risky Intertemporal Choice

Risky intertemporal choice can be measured using:

Choice tasks: Participants select between options that vary in magnitude, probability, and delay (e.g., choosing between a smaller immediate reward and a larger delayed reward with associated risks).

Discounting models: Analyzing how individuals discount future rewards based on their risk preferences, often using exponential or hyperbolic discounting functions.

Self-report questionnaires: Assessing attitudes towards risk and time preferences to understand decision-making patterns.