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@UCDavisEcon Anujit Chakraborti publishes paper on snooze alarm problem in top journal

Have you ever wondered why most of us struggle with the early-morning alarm? Research shows that our preferences are consistently biased towards immediate pleasures, a phenomenon known as Present Bias or Immediacy Effect. As Seinfeld put it, in the clash of present selves and future selves, the former always wins!

What causes Present Bias? @UCDavisEcon Professor Anujit Chakraborty recently published a paper in Econometrica, a top Economics journal, offering a new explanation by linking it to our preference for certainty: Our present tastes are certain, while future tastes are fuzzy and uncertain! For example, we know if we crave ice cream right this moment, but, we have less conviction about if we would crave ice cream exactly 24 hours later! In our decisions, we favor the certain over the uncertain. Mathematically, this paper establishes that all instances of Present Bias can be attributed to the uncertainty of future tastes.