Value Equation

Question 1

Value equation

Answer 1

We make choice based on what has the most value to us–the value of the potential reward is impacted by several parameters.

Question 2

Value (V)

Answer 2

Importance we assign to the reward

Question 3

Reward (R)

Answer 3

Something we find valuable.

• Integer, can be positive (benefit) or negative
• Relative
• Subjective

Question 4

Probability of success (pS)

Answer 4

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

Question 5

Impatience/Impulsivity (Imp)

Answer 5

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

Question 6

Delay (D)

Answer 6

How long before we get the reward.

• Time, always positive
• How long until we get the reward
• More delay = more temporal discounting

Question 7

As R and pS increases…

Answer 7

V increases

Question 8

As Imp and D increases…

Answer 8

V decreases

Question 9

Temporal discounting

Answer 9

Intuition. Reducing the value of something that is ahead in time.

Question 10

Temporal

Answer 10

Related to time

Question 11

Discount

Answer 11

Deduct an amount from (the usual price of something)

Question 12

When R > 0…

Answer 12

Positive value increases a D goes to 0

Question 13

When R < 0…

Answer 13

Negative value decreases as D goes to 0.