Fuzzy Logic Reveals Surprising Insights into Decision-Making Behaviors
The fuzzy temporal logic can be used to understand decision-making behaviors, like economic choices involving time, uncertainty, and fuzziness. Subadditive discounting is necessary for positive rewards, leading to effects like magnitude and time preferences. People tend to discount future rewards more heavily for shorter delays, but less for longer ones. Preference can also change when rewards are shifted in time. Risk-taking and risk aversion depend on the size of potential losses, with risk-seeking disappearing for very high values.