Open AccessA 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 of the united states of america
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.