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Bringing present bias back to the present

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  • Alexis Direr

    (LEO - Laboratoire d'Économie d'Orleans [UMR7322] - UO - Université d'Orléans - UT - Université de Tours - CNRS - Centre National de la Recherche Scientifique)

Abstract

A focused definition of present bias is proposed which takes preferences as primitives. A present biased individual over-weights immediate costs and benefits relative to those occurring at any point in the future. The definition allows to sort out previous confounds, such as decreasing impatience, choice reversal or short-term impatience. It intuitively connects to usual utility representations of present bias like the quasi-hyperbolic model of Laibson (1997) or the fixed cost model of Benhabib, Bisin and Schotter (2010). J.E.L. codes: D8, E21

Suggested Citation

  • Alexis Direr, 2020. "Bringing present bias back to the present," Working Papers hal-02133525, HAL.
    • Handle: RePEc:hal:wpaper:hal-02133525
    Note: View the original document on HAL open archive server: https://hal.science/hal-02133525v3
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    References listed on IDEAS

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    Keywords

    time preferences; decreasing impatience; present bias; short- term impatience;
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