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This document summarizes a research article that develops a model to explain why discount schedules may appear to be hyperbolic in nature. The authors construct an experiment to test if individuals who engage in behaviors like drinking, smoking, or overeating exhibit patterns of present bias when evaluating future economic outcomes. Their results show that discount functions are quasi-hyperbolic in shape, and that obesity and drinking are positively related to higher discount rates. The authors conclude tha

Author

Cristian HC

Language

EN