# Behavioural-Economics

Revised and resubmitted Review of Economic Studies Working paper August 2019 In many intertemporal decisions, the benefit of an action is concentrated in a few time periods, while the associated cost is dispersed over numerous periods. According to the focusing model” by \cite{Koszegi2013}, the more a utility outcome is concentrated in time, the more a decision maker focuses on and, hence, \textit{over}weights it. Such concentration bias provides a micro-foundation for present-biased and future-biased behaviour.