Present Bias and Collective Dynamic Choice in the Lab

S-Tier
Journal: American Economic Review
Year: 2014
Volume: 104
Issue: 12
Pages: 4184-4204

Authors (2)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study collective decisions by time-discounting individuals choosing a common consumption stream. We show that with any heterogeneity in time preferences, utilitarian aggregation necessitates a present bias. In lab experiments three quarters of "social planners" exhibited present biases, and less than two percent were time consistent. Roughly a third of subjects acted as if they were pure utilitarians, and the rest chose as if they also had varying degrees of distributional concerns. (JEL C91, D12, D71, D72)

Technical Details

RePEc Handle
repec:aea:aecrev:v:104:y:2014:i:12:p:4184-4204
Journal Field
General
Author Count
2
Added to Database
2026-01-25