In the context of behavioural economics, 'Present Bias' or 'Hyperbolic Discounting' refers to:
A. Only the preference for delayed gratification
B. The complete absence of time preference
C. The tendency to give stronger weight to payoffs that are closer to the present when considering trade-offs between two future moments
D. Consistent exponential discounting of all future payoffs
Answer: Option C
Solution (By JKSSB Mock Tests)
Present bias describes the common tendency for people to place disproportionately greater weight on immediate rewards relative to delayed rewards, leading to time-inconsistent preferences and self-control problems.
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