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Overcoming Short‐Termism: Mental Time Travel, Delayed Gratification and How Not to Discount the Future
Author(s) -
Irving Kym
Publication year - 2009
Publication title -
australian accounting review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.551
H-Index - 36
eISSN - 1835-2561
pISSN - 1035-6908
DOI - 10.1111/j.1835-2561.2009.00064.x
Subject(s) - gratification , mental accounting , economics , stock (firearms) , delay of gratification , corporate governance , construct (python library) , investment (military) , phenomenon , behavioral economics , investment decisions , dynamic inconsistency , financial economics , microeconomics , finance , psychology , social psychology , mechanical engineering , programming language , physics , quantum mechanics , politics , computer science , law , political science , engineering
Short‐termism has been identified as a characteristic of individuals, companies, stock markets, governance structures and policies, and has been linked to inadequate saving for retirement, reduced investment returns, greater market instability and destruction of long‐term value. As a construct, short‐termism is complex and multidimensional. Accordingly, this paper draws upon current theory and research from a range of fields including behavioural economics, psychology and the cognitive sciences to uncover both explanations of the phenomenon and implications for countering an overly short‐term focus. Possible strategies for achieving the latter are discussed.