Preference Reversal and Impulsivity in Discounting of Monetary Losses

We investigate delay discounting of monetary losses using the experimental data (N = 203). Based on the titration algorithm, we estimate the individual delay discounting rates of monetary losses. We further compare the fit of exponential, hyperbolic, and q-exponential models to the experimental data. The obtained results suggest that the hyperbolic model fits better than the classical exponential one. Hence, the preference reversal effect in delay discounting of monetary losses is observed in our experiment. Moreover, the best fit for the data is obtained through the q-exponential model. Also, participants would strongly like to postpone the immediate loss, even for a month, while the difference between further postponement comes with a much lower discount.