Scheduling with present bias

Abstract The study of time‐inconsistent decision‐making, in particular present bias, has greatly influenced the field behavioral economics over last two decades. Moreover, it resulted design and implementation widely used incentive schemes for various important applications. However, effect bias on decision‐making operational problems been studied less. This work considers a simple scheduling system that requires decisions about project timing sequencing. We algorithms enable optimization revenue less cost under both naive sophisticated (i.e., self‐aware) decision‐makers. describe managerial insights relative performance time‐consistent, naive, decision‐makers, how to mitigate effects bias. Both theoretical computational results support these insights.