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

• Persichina, Marco

  • Department of Forest Economics, Swedish University of Agricultural Sciences
    
  • Umeå University

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