Present Bias
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A Present Bias is a cognitive bias that ...
- …
- Counter-Example(s):
- See: Impatience, Self-Control Problem, Dynamic Inconsistency.
References
1999
- (O'Donoghue & Rabin, 1999) ⇒ Ted O'Donoghue, and Matthew Rabin. (1999). “Doing It Now Or Later.” In: American Economic Review.
- QUOTE: We examine self-control problems -- modeled as time-inconsistent, present-biased preferences -- in a model where a person must do an activity exactly once. We emphasize two distinctions: Do activities involve immediate costs or immediate rewards, and are people sophisticated or naive about future self-control problems? … People are impatient - they like to experience rewards soon and to delay costs until later. Economists almost always capture impatience by assuming that people discount streams of utility over time exponentially.