New study reveals present bias leads to overconsumption and risky behavior
The article explores how people make decisions about spending and investing money over time. By using a specific type of mathematical model, the researchers found that when people have a tendency to prioritize immediate rewards over long-term benefits, they tend to spend more than they should. This behavior can lead to taking on more risks than necessary. The study also shows that individuals who are more willing to trade off between present and future consumption are better at planning for the future.