Optimal parenting with present-biased children

• Main Authors: Goh, Fang Ru, Nadirah Isa, Phua, Su Boon
• Other Authors: Au Pak Hung
• Format: Final Year Project
• Language: English
• Published: 2017
• Subjects: DRNTU::Social sciences
• Online Access: http://hdl.handle.net/10356/69782
• Institution: Nanyang Technological University

This paper develops a game-theoretical model between an altruistic parent and a present-biased child in deciding on the amount of effort towards education. Our model posits that the degree of present bias leads to a divergence between the parent and child’s effort. Our results establish that a child...