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A psychophysical model of decision making

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  • West, B.J.
  • Grigolini, P.

Abstract

Herein we develop a psychophysical model of decision making based on the difference between objective clock time and the human brain’s perception of time. In this model the utility function is given by the survival probability, which is shown to be a generalized hyperbolic distribution. The parameters of the utility function are fit to intertemporal choice model experimental data and decision making is determined to be a 1/f-noise process.

Suggested Citation

  • West, B.J. & Grigolini, P., 2010. "A psychophysical model of decision making," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 389(17), pages 3580-3587.
    • Handle: RePEc:eee:phsmap:v:389:y:2010:i:17:p:3580-3587
    DOI: 10.1016/j.physa.2010.03.039
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    References listed on IDEAS

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    5. Bianco, Simone & Geneston, Elvis & Grigolini, Paolo & Ignaccolo, Massimiliano, 2008. "Renewal aging as emerging property of phase synchronization," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(5), pages 1387-1392.
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    7. Takahashi, Taiki, 2007. "A comparison of intertemporal choices for oneself versus someone else based on Tsallis’ statistics," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 385(2), pages 637-644.
    8. Shane Frederick & George Loewenstein & Ted O'Donoghue, 2002. "Time Discounting and Time Preference: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 351-401, June.
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    Cited by:

    1. V. I. Yukalov & D. Sornette, 2012. "Quantum decision making by social agents," Papers 1202.4918, arXiv.org, revised Oct 2015.
    2. Destefano, Natália & Martinez, Alexandre Souto, 2011. "The additive property of the inconsistency degree in intertemporal decision making through the generalization of psychophysical laws," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 390(10), pages 1763-1772.
    3. Bhattacharyya, Trambak & Shukla, Shanu & Pandey, Ranu, 2022. "A Tsallis-like effective exponential delay discounting model and its implications," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 603(C).
    4. Natalia Destefano & Alexandre Souto Martinez, 2010. "The additive property of the inconsistency degree in intertemporal decision making through the generalization of psychophysical laws," Papers 1010.5648, arXiv.org, revised May 2011.

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