Present Bias (Why do we prefer a small reward now rather than a larger reward later?)
The present bias, a brief explanation
What is the present bias?
The present bias is the tendency to prefer a small reward now rather than a large reward at a later time, although when both rewards are equal we prefer the later reward.
Example
After winning the lottery you may prefer a smaller immediate pay out now rather than a larger pay out that is delayed.
The literature
Meier, S. & Sprenger, C. (2010). Present-biased preferences and credit card borrowing. American Economic Journal: Applied Economics, 2(1), 193-210. Doi: 10.1257/app.2.1.193
Wang, Y. & Sloan, F. A. (2018). Present bias and health. Journal of Risk and Uncertainty, 57, 177-198. Doi: 10.1007/s11166-018-9289-z
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