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The effect of optimism bias on time preference

Tal Shavit ()

Economics and Business Letters, 2013, vol. 2, issue 3, 128-133

Abstract: This paper examines the effect of optimism bias on monetary time preference and risk tolerance. The results of a survey show that preference towards the present increases with optimism bias. I argue that the factor which affects time preference is the individual’s concern regarding future events, as measured by optimism bias.

Date: 2013
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