This paper reviews most of the works done on intertemporal choices. It highlights the differences between present-biased (best illustrated by La Fontaine « Un tiens vaut mieux que deux tu l’auras » – A bird in hand is worth two in the bush) and present-focused preferences.
The models of present-focused preferences are categorized by two properties: (no) commitment and dynamically (in)consistent preferences. They range from unitary-self temptations models to myopia. This alignment allowed the authors to show that present-focused preferences are a general case of present-biased preferences. They proceed by presenting the subtle mechanisms behind different models with stylized facts (which they call empirical regularities) with open questions to extrapolate on the potential research.
Few examples of these models with empirical regularities and open questions: preferences over monetary receipt timing, preferences over consumption timing, procrastination, naiveté, etc. Moreover, they explore some puzzles without associated stylized facts, such as: the way value declines over time, the role of temptation, the malleability and self-management, etc.
This paper is near exhaustive and lays the base for future research questions and the important distinctions to be done among various present-focused models. A must read.
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