Hyperbolic discounting leads to time-inconsistent consumer choices.
Hyperbolic discounting, where individuals disproportionately favor immediate rewards over delayed ones, is widely established in behavioral economics as a primary driver of time-inconsistent consumer choices and self-control failures.
The retrieved literature (such as papers 0, 1, and 8) consistently supports the foundational behavioral economic premise that hyperbolic discounting and present bias result in intertemporal preference reversals and time-inconsistent decision-making. No papers refute this core mechanism.
Stephen J. Hoch, George F. Loewenstein. Time-inconsistent Preferences and Consumer Self-Control. 1991. https://doi.org/10.1086/208573
The paper models consumer impatience and reference-dependent preferences, demonstrating how sudden increases in desire can override long-term plans and lead to time-inconsistent choices.
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Aliyu Ali Bawalle, Sumeet Lal, Trinh Xuan Thi Nguyen, Mostafa Saidur Rahim Khan, Yoshihiko Kadoya. Navigating Time-Inconsistent Behavior: The Influence of Financial Knowledge, Behavior, and Attitude on Hyperbolic Discounting. 2024. https://doi.org/10.3390/bs14110994
This study explicitly connects hyperbolic discounting (prioritizing smaller immediate rewards) to irrational, time-inconsistent behavior that negatively impacts long-term financial and personal well-being.
Guillon M, Nguyen-Van P, Willinger M, Ventelou B. Consumer Impatience: A Key Motive for Covid-19 Vaccination. 2023. https://doi.org/10.2139/ssrn.4484775
The research applies a quasi-hyperbolic discounting model to show how immediate consumption incentives alter intertemporal choices and drive time-inconsistent vaccination decisions.
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