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The effect of optimism bias on time preference

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  • Tal Shavit

Abstract

This paper examines the effect of optimism bias on monetary time preference and risk tolerance. The results of a survey show that preference towards the present increases with optimism bias. I argue that the factor which affects time preference is the individual’s concern regarding future events, as measured by optimism bias.

Suggested Citation

  • Tal Shavit, 2013. "The effect of optimism bias on time preference," Economics and Business Letters, Oviedo University Press, vol. 2(3), pages 128-133.
    • Handle: RePEc:ove:journl:aid:9946
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    File URL: https://reunido.uniovi.es/index.php/EBL/article/view/9946
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