A guaranteed immediate payout reduces impatience of financially constrained individuals | Zendy

Kimberley van der Heijden | Zendy; Anouk Festjens | Zendy; Caroline Goukens | Zendy; Tom Meyvis | Zendy

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A guaranteed immediate payout reduces impatience of financially constrained individuals

Author(s) -

Kimberley van der Heijden,

Anouk Festjens,

Caroline Goukens,

Tom Meyvis

Publication year - 2022

Publication title -

proceedings of the national academy of sciences

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 5.011

H-Index - 771

eISSN - 1091-6490

pISSN - 0027-8424

DOI - 10.1073/pnas.2108832119

Subject(s) - stochastic game , constraint (computer aided design) , economics , microeconomics , contrast (vision) , computer science , mechanical engineering , artificial intelligence , engineering

Significance A wealth of existing findings show that financially constrained individuals are myopic decision-makers who are particularly concerned about the present. We propose that the use of existing intertemporal choice tasks may have skewed our understanding of the decision-making of financially constrained individuals. Specifically, we observe that—as long as an immediate payout is guaranteed—financially constrained individuals are no more myopic than their more affluent counterparts.

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