Contextual Effects on Delayed Gains and Losses Mary Kay Stevenson Jia Qi Li Steven Morgan

Temporal Discounting A decrease in the impact of positive and negative consequences as a function of delaying the event.

Temporal Discounting Is discounting a fixed function? What factors change discounting?

Previous research has indicated that gains are discounted at different rates than losses when presented as isolated consequences. Gains are discounted at a faster rate than losses. When a gain and a loss is presented as a combined outcome, they are discounted differently and with the same discounting function as isolated gains and losses

You receive a loan for $1000 in 6 mos. Loan Amt $1000 $3000 $5000 1 mo 6 mos 1 yr 4 yrs You receive a loan for $1000 in 6 mos. I-----------------------------I-----------------------------I VERY INDIFFERENT VERY Unattractive Attractive Loans range from $1000 to $3000. Time ranges from 1 mo to 4 years.

You must pay $600 and it is due in 6 mos. Interest Payment $200 $600 $800 1 mo 6 mos 1 yr 4 yrs You must pay $600 and it is due in 6 mos. Stimuli for gain losses and their combinations were mixed and presented intermingled. I-----------------------------I-----------------------------I VERY INDIFFERENT VERY Unattractive Attractive Time ranges from 1 mo to 4 years. Interest to Pay ranges from $200 to $500

When a gain and a loss is presented as a combined outcome, they are discounted differently and with the same discounting function as isolated gains and losses.

Interest Loan Amount $200 due 1 mos 1 yr 4 yrs $800 1 mo $1000 $5000

You receive a loan for $1000 in 1 mos. You pay $200 and it is due in 1 year. I-----------------------------I-----------------------------I VERY INDIFFERENT VERY Unattractive Attractive Loans range from $1000 to $5000. Time ranges from 1 mo to 4 years. Interest to Pay ranges from $200 to $800

Temporal Discounting Is discounting a fixed function? What factors change discounting?

Context Parducci (1972) Range Frequency Theory: A change in the range or frequency of the stimuli changes the way they are rated on a response scale.

Contextual Manipulation 1 Different Procedures A. Isolated Gains, Isolated Losses and Combined Gains and Losses can be judged in one task but separated. B. Isolated Gains, Isolated Losses and Combined Gains and Losses can be randomly ordered and judged in one task.

Context: Isolated and Combined Gains and Losses Previous research has provided evidence that gains and losses are processed in different parts of the brain. Discounting functions differ for gains and losses. Magnitude effects for gains are reported more frequently for gains than losses.

Procedure Sets Context In the first graph, Gains were judged in one set, Losses in another set and then the Combined set. In the second graph they were judged together. They were given the same delays, the gains and losses appear to separate on the scale. Doesn’t always happened since other variables were adjusted.

Response Functions Isolated Gains or Isolated Losses are evaluated within Sign. Combined Gains and Losses may changed the range of the value manipulation from negative to positive.

Context Shift from one task to another task Within Subjects

Shift Conditions Within Subjects compare across subjects Between Task 1 Task 2 1 RateAp Gain short Loss short RateBp Gain long 2 Gain short 3 RateCp Loss short long 4

Discounting Gains AB BA (A)

Stimulus Context: Isolated Gains: Positive Range Isolated Losses Negative Range Combined Gains and Losses: Range from Negative to Positive Values.

Subjective Values influenced by stimulus structure A(AB) B(AB) Gain Mean Std Error 2000 44.599 1.971 45.848 1.983 5000 55.136 2.182 55.044 1.560 Gain(Loss) 39.274 .874 39.643 .695 45.172 .786 45.015 .569   A(BA) B(BA) 44.151 1.793 42.714 1.804 55.781 1.985 56.900 1.419 39.978 .795 39.646 .633 44.629 .715 44.981 .517 Isolated vs Combined F(1, 51) = 681, p<.0001 Gain F(1, 51) = 51.96, p<.0001 Isolated vs Combined X Gain F(1, 51) = 16.64, p<.0001

Contextual Manipulation: Shift in range. If the range of delays is lengthen for gains, will it affect the discounting weights for losses? Does it make a difference if you are shifting to a longer range or shifting to a shorter range? Does 6 mos and 1 yr have the same weight in a dleay range of 1 wk to 1 yr and 6 mos to 4 yrs?

Context: shifts in Range Will the discounting functions merge? Gain shift : 1 wk 3 mos 6 mos 1 yr 6 mos 1 yr 2 yrs 4 yrs Loss: 1 wk 3 mos 6 mos 1 yr Gain: 1 wk 3 mos 6 mos 1 yr Loss shift: 1 wk 3 mos 6 mos 1 yr

Adjective Evidence

Within shifts in the delay range appear to blend.