In the context of behavioural economics, 'Present Bias' or 'Hyperbolic Discounting' refers to:
A. The tendency to give stronger weight to payoffs that are closer to the present when considering trade-offs between two future moments
B. The complete absence of time preference
C. Consistent exponential discounting of all future payoffs
D. Only the preference for delayed gratification
Answer: Option A
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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