We misremember our past decisions to seem more disciplined

Individuals who place greater value on immediate rewards are more likely to misremember their past decisions as more patient and disciplined than they actually were, finds new research from Corvinus University of Budapest.

The researchers examined the link between present bias – the tendency to disproportionately favour immediate reward over future benefit – and memory accuracy in decision-making.

Participants were asked to choose between receiving the equivalent of 25€ in two weeks or four weeks, and then presented with eleven further choices, in which the sum at four weeks became increasingly larger. The moment at which participants switched to choosing the later-larger amount reflects the value they deem high enough to delay gratification by an additional two weeks. On a second occasion, an immediate reward option was available, tempting present-biased participants. During a third visit, participants were asked to recall their earlier decisions.

The results show that participants with present bias had lower memory accuracy and recalled switching to the delayed, larger-later reward sooner than they actually did. This suggests that individuals with present bias unintentionally recall their past decisions as more virtuous and future-oriented than they actually were.

“Interventions aimed at mitigating present bias might explore tools to enhance memory accuracy. Decision logs, reminders, or feedback mechanisms could help individuals align their remembered and actual choices, supporting greater awareness of impulsive behaviour,” says Professor Barna Bakó, Associate Professor from Corvinus University

The results were published in the Journal of Behavioral and Experimental Economics by researchers Barna Bakó (Corvinus), Antal Ertl (KRTK KTI) and Hubert János Kiss (Corvinus).

/ENDS

For more information, a copy of the research paper, or to find out more from Professor Barna Bakó, please contact Kyle Grizzell from BlueSky Education on +44 (0) 1582 790709 or kyle@bluesky-pr.com