Advances in Behavioral Economics

Not all models of intertemporal choice hold time preference constant neither do all models provide finite solutions. A number of studies assume that the rate of time preference depends on the level of consumption, while most researches indicate that time preference rate; model & assumptions largely differ with the length of time (time inconsistency), the nature of consumer goods, the magnitude of subjects and the essence of changing matters (uncertainty). That being said, it lends further researches and a wide spectrum field studies over and beyond laboratories in intertemporal consumption fields. In today’s economic uncertainty, potential ways in sustainable consumption and production (supply and demand) are paramount. Governments, businesses, institutions, and civil societies are eager to discover the link to end-point consumption and end-product life that propel consumers to attain resource and liquid assets efficiency. Under the same framework, consumers can therefore discover ways to enliven optimized consumption practice in their daily life. Social learning seems to be a more plausible explanation towards actual consumption decisions and more consistent to conform realistic buffer-stock models. Consumers can, in principle, learn from a wealth of open sources, either tacit, public or on line. Learning can also be generated from the experiences of family members, friends. Financial advisors can also help spending decisions to meet optimality. Governments as key solution providers to environmental, economic, social issues should start implementing such social learning resources and mechanisms readily available to citizens in order to avoid sub-optimal spending decision traps.