Does cross-modal discounting generalize to non-WEIRD cultures? A comparison of the USA and Japan

Abstract

This paper examines how outcome modality in intertemporal choice influences time preferences and whether the process differs across cultures, specifically Japan and the United States. Uni-modal choices are those when the outcomes being compared over time are very similar, and cross-modal choices are those when the outcomes are very different. The cross-modal effect, previously shown in the U.S., is that there is greater patience in cross-modal decisions. In Experiment 1, we employed a between-participants design, in which participants either made uni-modal or cross-modal decisions. In Experiment 2, we employed a within-participants design in which everyone made both types of decision. In both Experiments we replicated the cross-modal effect. Moreover, the magnitude of the effect did not vary with factors known to relate to time preference, such as cognitive ability and social status, and it did not differ across cultures, even though Japanese participants were much more patient than American ones. The effect was stronger in the between- than within-participants experiment. These results strengthen the conclusion that the cross-modal effect is universal and strengthens the argument that it is due to the fundamental process of attentional dilution.