TAKE IT NOW OR SAVE IT FOR LATER? AN ERP STUDY OF INTERTEMPORAL CHOICE
- LanguageENG
- URLhttp://db.koreascholar.com/Article/Detail/271916
pp.1311-1312
The aim of the present research is to explore the neural features of intertemporal choice. Intertemporal choice concerns the phenomenon of temporal discounting which demonstrates consumers’ tendency to devalue a future reward as the receipt of money reward is delayed further distantly into the future. It is also called the ‘present bias,’ a special kind of attachment consumers place to immediate a cash reward which consumers are willing to take even at a discount, instead of saving it for the future. The urge to choose an immediate reward at some discounting rates, i.e., temporal impulsivity, is deeply embedded in our instinct. On the other hand, the choice for a delayed option is made as a result of effortful and deliberate cognitive control, by suppressing the urge for instant gratification and shifting focus to the long-term gain. Neuroscience researchers have found the prefrontal cortex as a key brain region behind deliberate and analytic decision-making such as reward delay. The experimental paradigm used in this study adopted from Kirby, Petry, & Bickel (1999). There were ten intertemporal investment choices representing six different levels of discounting rates. Participants (N=21) were given the two investment options, as “take it now” and a “save for later” options, and they were asked to indicate a preferred option. The brain waves were recorded using a 32 channel EEG system. We conducted noise control by using Independent Component Analysis (ICA) in EEGLAB and analyzed the Event-Related Potentials (ERP) particularly focusing on the phase when each participant was examining the future-oriented “save for later” option. The behavioral responses were divided into two groups, one in which the present option was selected and the other in which a future-oriented “save it for later” option was selected. Custom-written Matlab codes were used to compare the differences in ERPs between the two choice responses. A greater positive component of P3 after 300 milliseconds at the onset of the future option was observed in the fronto-parietal regions when the “save it for later” options were chosen compared to when the “take it now” choices were made. Hence, during intertemporal choice, the fronto-parietal regions are likely to play a key role in enabling the long-term perspective and consequently, precipitate the choice of a future-oriented deal. The P3 signal across the fronto-parietal regions may potentially be a proximal indicator of a future-oriented choice during intertemporal financial decision-making.