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.

Persichina, M. (2024). Present Bias in Renewable Resource Management and Agent’s Welfare. JOURNAL OF INTERDISCIPLINARY ECONOMICS, 36.

Present Bias in Renewable Resource Management and Agent’s Welfare

Marco Persichina
2024-01-01

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.
2024
Pubblicato
Rilevanza internazionale
Articolo
Esperti anonimi
Settore SECS-P/01
Settore SECS-P/02
Settore SECS-P/03
Settore SECS-P/06
English
Persichina, M. (2024). Present Bias in Renewable Resource Management and Agent’s Welfare. JOURNAL OF INTERDISCIPLINARY ECONOMICS, 36.
Persichina, M
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2108/349124
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