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.
| Original language | English |
|---|---|
| Pages (from-to) | 128-133 |
| Number of pages | 6 |
| Journal | Economics and Business Letters |
| Volume | 2 |
| Issue number | 3 |
| State | Published - 2013 |
Keywords
- time preference
- discount rates
- time and risk perception