Persichina, Marco
- Department of Forest Economics, Swedish University of Agricultural Sciences
- Umeå University
Research article2024Peer reviewedOpen access
Present Bias in Renewable Resources Management Reduces Agent's Welfare
Persichina, Marco
Abstract
This article analyses the effects of myopic and present-biased preferences on the welfare of a naive agent when he/she is engaged in an intertemporal harvesting activity from a stock of renewable resources. The analysis is conducted by also taking into account the nature of present-biased behaviours as phenomena that is derived from a dual system of discounting and of response to short and long-term stimuli.In the task of harvesting from a stock of renewable resources, the present biased preferences of a naive agent create a conflict between the long-run benefit of the agent and the short-run desire.Thus, this article demonstrates and argues that in the decision-making, which involves intertemporal choices in renewable resources management, the prevalence of naive behaviour, strongly influenced by the emotional-affective system, can lead to a reduction in the overall utility enjoyed by the individual due to the present bias.
Keywords
Present bias; naive agent; intertemporal choice; harvesting; dual system discounting
Published in
Journal of Interdisciplinary Economics
2024, volume: 36, number: 1, pages: 79-97
Publisher: SAGE PUBLICATIONS INDIA PVT LTD
SLU Authors
UKÄ Subject classification
Economics
Publication identifier
- DOI: https://doi.org/10.1177/02601079221088072
Permanent link to this page (URI)
https://res.slu.se/id/publ/123347