Present bias: Definition and measurement
Résumé
A novel 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). Drawing on the definition, we propose two experimental methods measuring present bias at the individual level which do not require assumptions about utility or discounting, one for daily trade-offs, the other for intra-daily trade-offs. J.E.L. codes: D8, E21
Domaines
Economies et finances
Origine : Fichiers produits par l'(les) auteur(s)
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