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Adapting to the Destitute Situations: Poverty Cues Lead to Short-Term Choice

Author

Listed:
  • Lei Liu
  • Tingyong Feng
  • Tao Suo
  • Kang Lee
  • Hong Li

Abstract

Background: Why do some people live for the present, whereas others save for the future? The evolutionary framework of life history theory predicts that preference for delay of gratification should be influenced by social economic status (SES). However, here we propose that the decision to choose alternatives in immediate and delayed gratification in poverty environments may have a psychological dimension. Specifically, the perception of environmental poverty cues may induce people alike to favor choices with short-term, likely smaller benefit than choices with long-term, greater benefit. Methodology/Principal Findings: The present study was conducted to explore how poverty and affluence cues affected individuals' intertemporal choices. In our first two experiments, individuals exposed explicitly (Experiment 1) and implicitly (Experiment 2) to poverty pictures (the poverty cue) were induced to prefer immediate gratification compared with those exposed to affluence pictures (the affluence cue). Furthermore, by the manipulation of temporary perceptions of poverty and affluence status using a lucky draw game; individuals in the poverty state were more impulsive in a manner, which made them pursue immediate gratification in intertemporal choices (Experiment 3). Thus, poverty cues can lead to short-term choices. Conclusions/Significance: Decision makers chose more frequently the sooner-smaller reward over the later-larger reward as they were exposed to the poverty cue. This indicates that it is that just the feeling of poverty influences intertemporal choice – the actual reality of poverty (restricted resources, etc.) is not necessary to get the effect. Furthermore, our findings emphasize that it is a change of the poverty-affluence status, not a trait change, can influence individual preference in intertemporal choice.

Suggested Citation

  • Lei Liu & Tingyong Feng & Tao Suo & Kang Lee & Hong Li, 2012. "Adapting to the Destitute Situations: Poverty Cues Lead to Short-Term Choice," PLOS ONE, Public Library of Science, vol. 7(4), pages 1-6, April.
  • Handle: RePEc:plo:pone00:0033950
    DOI: 10.1371/journal.pone.0033950
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    References listed on IDEAS

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    Cited by:

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    2. DELIS, Manthos & GALARIOTIS, Emilios & IOSIFIDI, Maria & MONNE, Jerome, 2023. "Poverty and seeking bank advice: Evidence from a survey experiment," Journal of Financial Stability, Elsevier, vol. 67(C).
    3. Smyth, Laura J. & Cruise, Sharon M. & Tang, Jianjun & Young, Ian & McGuinness, Bernadette & Kee, Frank & McKnight, Amy Jayne, 2023. "Differential methylation in CD44 and SEC23A is associated with time preference in older individuals," Economics & Human Biology, Elsevier, vol. 49(C).
    4. Lei Liu & Tingyong Feng & Jing Chen & Hong Li, 2013. "The Value of Emotion: How Does Episodic Prospection Modulate Delay Discounting?," PLOS ONE, Public Library of Science, vol. 8(11), pages 1-7, November.
    5. Dimitris Damigos & Christina Kaliampakou & Anastasios Balaskas & Lefkothea Papada, 2021. "Does Energy Poverty Affect Energy Efficiency Investment Decisions? First Evidence from a Stated Choice Experiment," Energies, MDPI, vol. 14(6), pages 1-17, March.
    6. Rhiannon Corcoran & Rosie Mansfield & Trina Giokas & Amy Hawkins & Lauren Bamford & Graham Marshall, 2017. "Places Change Minds: Exploring the Psychology of Urbanicity Using a Brief Contemplation Method," SAGE Open, , vol. 7(2), pages 21582440177, May.
    7. Delis, Manthos & Galariotis, Emilios & Monne, Jerome, 2021. "Financial vulnerability and seeking expert advice: Evidence from a survey experiment," MPRA Paper 107095, University Library of Munich, Germany.
    8. Martin Burgess & Mark Whitehead, 2020. "Just Transitions , Poverty and Energy Consumption: Personal Carbon Accounts and Households in Poverty," Energies, MDPI, vol. 13(22), pages 1-24, November.
    9. Alami, Sarah & Stieglitz, Jonathan & Kaplan, Hillard & Gurven, Michael, 2018. "Low perceived control over health is associated with lower treatment uptake in a high mortality population of Bolivian forager-farmers," Social Science & Medicine, Elsevier, vol. 200(C), pages 156-165.

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