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.

A choice in temporal discounting is often made on one preferred option between a sooner but smaller reward and a later but larger reward. In temporal discounting, a consumer undergoes an evaluation process concerning the trade-offs between time delay (i.e., a choice between sooner and later receipts) and the amount of reward (i.e., a choice between smaller and larger rewards). It has been evidenced that a surprisingly large number of consumers is inclined to choose a sooner option with a lower economic value. Those consumers tend to apply an excessive temporal discounting rate to the time delay and as a result, the sooner option with lower economic value stands out to be more attractive. However, there is another group of consumers who deliberately promote the long-term perspective in the evaluation process. Those consumers show a high tendency of choosing a later option with greater economic value. A key factor affecting the evaluation process is the sensitivity to time delay a consumer entails. The sensitivity to time delay could systematically affect the representations of hedonic pleasure being projected at different time delays and is the basis of individual differences in hedonic orientation. An anhedonia, a person with the ability to control physical pleasure, is likely to be less sensitive to time delay and apply a lower discounting rate for delayed rewards because he processes the presently available pleasure less intensively than do ordinary consumers. Thus, anhedonic consumers are more likely to choose a delay reward in temporal discounting choices. In a famous fable by Aesop, “The Ant and the Grasshopper” suggest a possible linkage between hedonic orientation and temporal discounting tendency. The story goes that the Grasshopper enjoys whatever is on its hands and does not give much thought to what is going to happen in the future, while the Ant takes on the hardship denying the current pleasure as he plans for the difficult winter time. We conducted an experiment to investigate the relationships among individual differences in hedonic orientation, and the behavioral choices in temporal discounting trials by examining the EEG theta (4-8 Hz) correlates. A hedonic orientation questionnaire was developed using twenty selected items from Physical Anhedonia Scale, Barratt Impulsiveness Scale and Impulsive Buying Scale. Using the questionnaire, the hedonic orientation of fifteen participants was analyzed. Among them, five participants were classified into anhedonia (Ant-like, AN) group and ten participants were into hedonic pleasure dependent (Grasshopper-like, GH) group. Participants conducted ten temporal discounting trials and, in each trial, a choice was made between two options, either a smaller reward today (the “now” option) or a greater reward to be received after a specified time delay (the “future-oriented” option). The absolute theta activations while viewing a future-oriented option in each trial were analyzed as the neural correlates of temporal discounting. The results indicated that the hedonic orientation of participants had a high prediction power of not only behavioral choices in temporal discounting but also EEG theta activations in the frontal brain region. In analyzing temporal discounting tendencies, the discounting rate of AN group was found to be lower than that of GH group. In addition, EEG theta analysis shows two interesting activation patterns in the frontal region. First, AN group showed higher frontal theta activations than GH group indicating its deliberate engagement to future-oriented options. Second, theta activations in the Dorsolateral Prefrontal Cortex (DLPFC), more specifically AF3 and AFz, were negatively correlated with the discounting rate of participants. Neuroscience researches often refer that DLPFC is associated with deliberate and analytic information processing. Therefore, the high theta activations in DLPFC could be considered as a distinctive neural indicator of high anhedonia traits and low temporal impulsivity.