The effect of mediation on present bias
Keywords
No Thumbnail Available
Authors
Issue Date
2021-07-26
Language
en
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
In this investigation, we tested the effect of a short Mindfulness meditation intervention on intertemporal
choices considering multiple discounted utility models, Namely Exponential and quasi-hyperbolic
discounting models. For each of the used models, we performed the analysis assuming risk neutrality and
considering Constant Relative Risk Aversion (CRRA). Based on a literature survey, we hypothesized that
the brief intervention would lower present bias (β ¿ while performing intertemporal choices. We also
assumed that the intervention would increase the patience of subjects; thus, we expected an increase in
the long-term discount factor (δ ¿. The survey design was based on the method used by Bradford et al.
(2014) to measure discounting factors using Maximum likelihood Estimations using the multiple price
list’s answers of participants. We found a small but significant positive effect on the discount factor δ in
the Quasihyperbolic discounting utility model assuming risk neutrality. Moreover, our research found
significant differences in the mean discounted utility factors values (β and δ ¿ before and after the
intervention in the delta discount factors of both models. Our results indicate that participants who
practice meditation often discount the future less heavily in comparison with other population groups.
Description
Citation
Supervisor
Faculty
Faculteit der Managementwetenschappen