Time's Influence: A Systematic Review of Biases in Intertemporal Decision-Making

Abstract

Cognitive biases significantly influence decision-making by distorting how individuals perceive and evaluate outcomes over time. This systematic review synthesizes research from various domains, including behavioral economics, psychology, and health, to explore six time-related biases affecting intertemporal judgments and trade-offs. We analyze the underlying mechanisms of each bias, map their interrelationships, and uncover their impacts on both individual choices and societal decisions. Drawing upon empirical evidence, we propose tailored strategies to mitigate the adverse effects of these biases. Our findings contribute to the literature not only by enhancing the understanding of time-related cognitive biases but also by providing practical insights for improving decision-making and policy design aimed at promoting long-term well-being. The review concludes by highlighting critical gaps in the literature and outlining a future research agenda to further investigate and address biases in intertemporal decision-making.