COVID-19-Related Financial Scarcity is Associated with Greater Delay Discounting But Not Probability Discounting

Prior laboratory studies suggest that scarcity increases delay discounting (devaluation of delayed outcomes) and disturbs other decision-making processes. Recent evidence on the effect of COVID-19 on delay discounting is mixed. In addition, no study has examined the effect of COVID-19-related scarcity on probability discounting (devaluation of probabilistic outcomes). The present study examined cross-sectional associations between COVID-19-related scarcity, delay discounting, and probability discounting. During April 2020, 1012 participants with low income were recruited on Amazon Mechanical Turk (MTurk) and completed measures of delay and probability discounting of money and food (grocery gift card), COVID-19-related financial impacts, stress, and food security. Regression analyses indicate that compared to those with no COVID-19 related financial impacts, those with severe COVID-19 related financial impacts had greater delay discounting of money and greater delay discounting of food. In addition, greater food insecurity in the past month was associated with greater delay discounting of food but not money. COVID-19 related financial impact was not associated with probability discounting of money or probability discounting of food. Combined with laboratory experiments, the present study provides additional support for the idea that scarcity or income shock may increase delay discounting, particularly during the onset of COVID-19.