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Uncertainty about future payoffs makes impatience rational

  • James Holland Jones (a1)

Abstract

Uncertainty (i.e., variable payoffs with unknown probabilities) brings together a number of features of the authors' argument. It leads to present bias, even for completely rational agents with time-consistent preferences. As an evolutionary product of Pleistocene climate instability, humans possess broad adaptations to environmental uncertainty, giving rise to key features of the behavioral constellation of deprivation (BCD).

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