IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0033950.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0033950
    Download Restriction: no

    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0033950&type=printable
    Download Restriction: no

    File URL: https://libkey.io/10.1371/journal.pone.0033950?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Oakes, J. Michael & Rossi, Peter H., 2003. "The measurement of SES in health research: current practice and steps toward a new approach," Social Science & Medicine, Elsevier, vol. 56(4), pages 769-784, February.
    2. Elizabeth Tricomi & Antonio Rangel & Colin F. Camerer & John P. O’Doherty, 2010. "Neural evidence for inequality-averse social preferences," Nature, Nature, vol. 463(7284), pages 1089-1091, February.
    3. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Delis, Manthos & Galariotis, Emilios & Monne, Jerome, 2021. "Economic condition and financial cognition," Journal of Banking & Finance, Elsevier, vol. 123(C).
    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. 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.
    4. 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.
    5. 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).
    6. 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.
    7. 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.
    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Burnham, Terence C., 2013. "Toward a neo-Darwinian synthesis of neoclassical and behavioral economics," Journal of Economic Behavior & Organization, Elsevier, vol. 90(S), pages 113-127.
    2. Teklewold, Hailemariam, 2011. "Farming or burning? shadow prices and farmer’s impatience on the allocation of multi-purpose resource in the mixed farming system of Ethiopia," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116080, European Association of Agricultural Economists.
    3. van den Bergh, J.C.J.M. & Botzen, W.J.W., 2015. "Monetary valuation of the social cost of CO2 emissions: A critical survey," Ecological Economics, Elsevier, vol. 114(C), pages 33-46.
    4. Robert Gazzale & Julian Jamison & Alexander Karlan & Dean Karlan, 2013. "Ambiguous Solicitation: Ambiguous Prescription," Economic Inquiry, Western Economic Association International, vol. 51(1), pages 1002-1011, January.
    5. Hinnosaar, Marit, 2016. "Time inconsistency and alcohol sales restrictions," European Economic Review, Elsevier, vol. 87(C), pages 108-131.
    6. Caroline Flammer & Michael W. Toffel & Kala Viswanathan, 2021. "Shareholder activism and firms' voluntary disclosure of climate change risks," Strategic Management Journal, Wiley Blackwell, vol. 42(10), pages 1850-1879, October.
    7. Yamada, Katsunori & Sato, Masayuki, 2013. "Another avenue for anatomy of income comparisons: Evidence from hypothetical choice experiments," Journal of Economic Behavior & Organization, Elsevier, vol. 89(C), pages 35-57.
    8. Min Gong & David Krantz & Elke Weber, 2014. "Why Chinese discount future financial and environmental gains but not losses more than Americans," Journal of Risk and Uncertainty, Springer, vol. 49(2), pages 103-124, October.
    9. Matteo Iacoviello, 2008. "Household Debt and Income Inequality, 1963–2003," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 40(5), pages 929-965, August.
    10. Cosmo, Valeria Di & O’Hora, Denis, 2017. "Nudging electricity consumption using TOU pricing and feedback: evidence from Irish households," Journal of Economic Psychology, Elsevier, vol. 61(C), pages 1-14.
    11. repec:cup:judgdm:v:16:y:2021:i:3:p:709-728 is not listed on IDEAS
    12. Richard M. H. Suen, 2014. "Time Preference And The Distributions Of Wealth And Income," Economic Inquiry, Western Economic Association International, vol. 52(1), pages 364-381, January.
    13. Mitchell, O.S. & Piggott, J., 2016. "Workplace-Linked Pensions for an Aging Demographic," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 865-904, Elsevier.
    14. Aman, Hiroyuki & Motonishi, Taizo & Ogawa, Kazuhito & Omori, Kozo, 2024. "The effect of financial literacy on long-term recognition and short-term trade in mutual funds: Evidence from Japan," International Review of Economics & Finance, Elsevier, vol. 89(PB), pages 762-783.
    15. Kimmich, Christian & Fischbacher, Urs, 2016. "Behavioral determinants of supply chain integration and coexistence," Journal of Forest Economics, Elsevier, vol. 25(C), pages 55-77.
    16. Filiz-Ozbay, Emel & Guryan, Jonathan & Hyndman, Kyle & Kearney, Melissa & Ozbay, Erkut Y., 2015. "Do lottery payments induce savings behavior? Evidence from the lab," Journal of Public Economics, Elsevier, vol. 126(C), pages 1-24.
    17. Stephen L. Cheung & Agnieszka Tymula & Xueting Wang, 2022. "Present bias for monetary and dietary rewards," Experimental Economics, Springer;Economic Science Association, vol. 25(4), pages 1202-1233, September.
    18. Hoeck, Sarah & François, Guido & Van der Heyden, Johan & Geerts, Joanna & Van Hal, Guido, 2011. "Healthcare utilisation among the Belgian elderly in relation to their socio-economic status," Health Policy, Elsevier, vol. 99(2), pages 174-182, February.
    19. Lex Borghans & Angela Lee Duckworth & James J. Heckman & Bas ter Weel, 2008. "The Economics and Psychology of Personality Traits," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
    20. David Macro & Jeroen Weesie, 2016. "Inequalities between Others Do Matter: Evidence from Multiplayer Dictator Games," Games, MDPI, vol. 7(2), pages 1-23, April.
    21. Luc Arrondel & André Masson, 2013. "Measuring savers' preferences how and why?," PSE Working Papers halshs-00834203, HAL.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:plo:pone00:0033950. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.