Present Bias: Lessons Learned and To Be Learned

Ted O'Donoghue; Matthew Rabin

doi:10.1257/aer.p20151085

American Economic Review Vol. 105 No. 5 2015

Present Bias: Lessons Learned and To Be Learned

¹ Department of Economics, Cornell University, 482 Uris Hall, Ithaca, NY 14853 (e-mail: ) · ² Department of Economics, Harvard University, Littauer Center M-8, Cambridge, MA 02138 (e-mail: )

Abstract

While present bias is an old idea, it only took hold in economics following David Laibson's (1994) dissertation. Over the past 20 years, research has led to a much better theoretical understanding of present bias, when and how to apply it, and which ancillary assumptions are appropriate in different contexts. Empirical analyses have demonstrated how present bias can improve our understanding of behavior in various economic field contexts. Nonetheless, there is still much to learn. In this paper, we give our assessment of some lessons learned, and to be learned.

DOI: 10.1257/aer.p20151085
Volume: 105
Issue: 5
Pages: 273-279
Language: en
Sources: bibtex:phds-export.bib crossref openalex

Present Bias: Lessons Learned and To Be Learned

Abstract

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