Research seminar: What can we learn from subjective time preference, and how can we influence it?
A research seminar that will be given by Prof. Mosi Rosenboim from Ben Gurion University.
Time preference is the tendency of individuals to favor utility in either present or future periods. Subjective time preference is an individual's interest rate. It is usually higher than the banks' interest rate. It presents an individual’s willingness to wait for future consumption and lose some value in consuming in the present.
In the economic and financial literature, subjective time preference is a well-known decision-making component. It varies from person to person, depending on their willingness to wait. Time preference affects decisions and individual's behavior in various areas of life: financial management, consumption, health - obesity, smoking, savings, and risk-taking.
In the current seminar, I will present the time preference concept and show a series of studies examining the causes of different time preferences. In addition, I will demonstrate how people with varying time preferences make other decisions in various areas and how we can influence an individual’s time preference.