Chapter 8 How the Experience of Time Shapes Decision-Making Marc Wittmann and Martin P. Paulus Abstract We present an outline of a model for how the subjective experience of time influences decision-making. First, an individual’s time perspective determines how strongly attention is directed to time. A stronger emphasis on the present perspective at the expense of the future perspective—as seen in impulsive indi- viduals—leads to a stronger focus on the passage of time in waiting situations. This in turn causes longer estimates of duration. In intertemporal decisions, a relative overestimation of duration can lead to the perception of delayed rewards lying too far in the future. As a consequence, the value of a future commodity is discounted and more immediate but less valuable rewards are preferred. We present empirical evidence on the relationship between time perception and intertemporal decision-making and discuss these findings within the respective psychological and neural models. 8.1 Introduction Time plays a pivotal role in decision-making. Several temporal aspects can be identified which are relevant for different processing stages in decision-making (Ariely and Zakay 2001; Klapproth 2008). For example, time can be a scarce or abundant resource when making decisions: how much time do I have before I must choose an option? Time is a commodity and subject matter of decisions: how many M. Wittmann (&) Institute for Frontier Areas of Psychology and Mental Health, Wilhelmstr. 3a, 79098 Freiburg, Germany e-mail: wittmann@igpp.de M.P. Paulus Laureate Institute for Brain Research, Tulsa, Oklahoma, USA M.P. Paulus Psychiatry Service, VA San Diego Healthcare System La Jolla, San Diego, USA M.P. Paulus Department of Psychiatry, University of California, San Diego, La Jolla, CA, USA © Springer-Verlag Berlin Heidelberg 2016 M. Reuter and C. Montag (eds.), Neuroeconomics, Studies in Neuroscience, Psychology and Behavioral Economics, DOI 10.1007/978-3-642-35923-1_8 133