Value Equation Flashcards
1
Q
Value equation
A
We make choice based on what has the most value to us–the value of the potential reward is impacted by several parameters.
2
Q
Value (V)
A
Importance we assign to the reward
3
Q
Reward (R)
A
Something we find valuable.
- Integer, can be positive (benefit) or negative
- Relative
- Subjective
4
Q
Probability of success (pS)
A
Perceived likelihood of getting the reward.
- Probability (range of 0 to 1. 0 = event never occurring)
- How you rate your chances of getting the reward
- Subjective
5
Q
Impatience/Impulsivity (Imp)
A
Trait that describes how quickly we want the reward.
- Integer
- Stable, fixed for everyone
- Varies according to reward or situation
- Own personality impacts time and reward
- The higher the Imp, the greater the impact of temporal discounting
6
Q
Delay (D)
A
How long before we get the reward.
- Time, always positive
- How long until we get the reward
- More delay = more temporal discounting
7
Q
As R and pS increases…
A
V increases
8
Q
As Imp and D increases…
A
V decreases
9
Q
Temporal discounting
A
Intuition. Reducing the value of something that is ahead in time.
10
Q
Temporal
A
Related to time
11
Q
Discount
A
Deduct an amount from (the usual price of something)
12
Q
When R > 0…
A
Positive value increases a D goes to 0
13
Q
When R < 0…
A
Negative value decreases as D goes to 0.
