Time and Present-Biased Preferences in Intertemporal Behavior of Iranian Young People: Case Study of Students of Ferdowsi University of Mashhad
Time preference and intertemporal behavior are of basic importance in theoretical and applied studies of decision-making and economic analysis. Present-bias induces individuals to postpone their savings and makes the saving level less than its optimal level. This article studies the present-biased a...
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| Format: | Article |
| Language: | fas |
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Tarbiat Modares University
2018-08-01
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| Series: | پژوهشهای اقتصادی |
| Subjects: | |
| Online Access: | http://ecor.modares.ac.ir/article-18-15847-en.pdf |
| _version_ | 1827924967084261376 |
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| author | parvin tashakori saleh mahdi khodaparast Mahdi Feizi |
| author_facet | parvin tashakori saleh mahdi khodaparast Mahdi Feizi |
| author_sort | parvin tashakori saleh |
| collection | DOAJ |
| description | Time preference and intertemporal behavior are of basic importance in theoretical and applied studies of decision-making and economic analysis. Present-bias induces individuals to postpone their savings and makes the saving level less than its optimal level. This article studies the present-biased and time preferences in intertemporal consumption-saving behavior among selected students of Ferdowsi University of Mashhad. It examines the effect of interest rate on intertemporal decision-making and tests the impacts of individual factors such as past experiences, gender and consumption expenditure on present-bias. Hence, after reviewing the theoretical basics, the parameters of individual present-biased and time preferences have been estimated by “multiple price list” and “convex time budget” methods. In this experiment, participants were faced with different decision-making situations along with changes in interest rates. The results of experiment show that participants are generally present-biased in their intertemporal behavior. In addition, individuals exhibit more present bias in “multiple price list” method than “convex time budget” method. While interest rate is an influential factor in intertemporal decision-making, but the intertemporal behavior of students is influenced by their past experiences. There is no significant relationship between gender and present bias. Furthermore, consumption expenditure was independent of present bias. |
| first_indexed | 2024-03-13T05:18:25Z |
| format | Article |
| id | doaj.art-a3ba58407c6f4dbabebdd11478b240a6 |
| institution | Directory Open Access Journal |
| issn | 1735-6768 2980-7832 |
| language | fas |
| last_indexed | 2024-03-13T05:18:25Z |
| publishDate | 2018-08-01 |
| publisher | Tarbiat Modares University |
| record_format | Article |
| series | پژوهشهای اقتصادی |
| spelling | doaj.art-a3ba58407c6f4dbabebdd11478b240a62023-06-15T20:23:11ZfasTarbiat Modares Universityپژوهشهای اقتصادی1735-67682980-78322018-08-0118379102Time and Present-Biased Preferences in Intertemporal Behavior of Iranian Young People: Case Study of Students of Ferdowsi University of Mashhadparvin tashakori saleh0mahdi khodaparast1Mahdi Feizi2 Ferdowsi University of Mashhad Ferdowsi University of Mashhad Ferdowsi University of Mashhad Time preference and intertemporal behavior are of basic importance in theoretical and applied studies of decision-making and economic analysis. Present-bias induces individuals to postpone their savings and makes the saving level less than its optimal level. This article studies the present-biased and time preferences in intertemporal consumption-saving behavior among selected students of Ferdowsi University of Mashhad. It examines the effect of interest rate on intertemporal decision-making and tests the impacts of individual factors such as past experiences, gender and consumption expenditure on present-bias. Hence, after reviewing the theoretical basics, the parameters of individual present-biased and time preferences have been estimated by “multiple price list” and “convex time budget” methods. In this experiment, participants were faced with different decision-making situations along with changes in interest rates. The results of experiment show that participants are generally present-biased in their intertemporal behavior. In addition, individuals exhibit more present bias in “multiple price list” method than “convex time budget” method. While interest rate is an influential factor in intertemporal decision-making, but the intertemporal behavior of students is influenced by their past experiences. There is no significant relationship between gender and present bias. Furthermore, consumption expenditure was independent of present bias.http://ecor.modares.ac.ir/article-18-15847-en.pdfintertemporal behaviorpresent biascognitive economicsexperimental economics |
| spellingShingle | parvin tashakori saleh mahdi khodaparast Mahdi Feizi Time and Present-Biased Preferences in Intertemporal Behavior of Iranian Young People: Case Study of Students of Ferdowsi University of Mashhad پژوهشهای اقتصادی intertemporal behavior present bias cognitive economics experimental economics |
| title | Time and Present-Biased Preferences in Intertemporal Behavior of Iranian Young People: Case Study of Students of Ferdowsi University of Mashhad |
| title_full | Time and Present-Biased Preferences in Intertemporal Behavior of Iranian Young People: Case Study of Students of Ferdowsi University of Mashhad |
| title_fullStr | Time and Present-Biased Preferences in Intertemporal Behavior of Iranian Young People: Case Study of Students of Ferdowsi University of Mashhad |
| title_full_unstemmed | Time and Present-Biased Preferences in Intertemporal Behavior of Iranian Young People: Case Study of Students of Ferdowsi University of Mashhad |
| title_short | Time and Present-Biased Preferences in Intertemporal Behavior of Iranian Young People: Case Study of Students of Ferdowsi University of Mashhad |
| title_sort | time and present biased preferences in intertemporal behavior of iranian young people case study of students of ferdowsi university of mashhad |
| topic | intertemporal behavior present bias cognitive economics experimental economics |
| url | http://ecor.modares.ac.ir/article-18-15847-en.pdf |
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