Summary: | Increasingly, we can invest in projects that are distributed
around the world through online investment platforms. Will the spatial distance
between these projects and ourselves affect our investment preferences? The
present research aims to experimentally examine the impact of spatial distance
on intertemporal preferences for investment returns and to explore the
underlying mediating effect of the sense of control. Three studies were devised
to address this topic. Studies 1 and 2 used two methods to manipulate the
spatial distance between the location of investment projects and the location
of investors. Participants were more impatient with investment returns when
the investment project was located farther away. In other words, they preferred
lower but earlier returns in intertemporal choice. Moreover, participants’
sense of control over the investment project mediated the relationship between
spatial distance and intertemporal preferences. Using a priming method, Study 3
showed that participants’ impatience for investment returns in investments with
different spatial distances could be remedied by giving them generalized
control. Theoretical implications for studies regarding psychological distance
and intertemporal decision making and practical implications for investments
are discussed.
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