Hyperbolic discounting

What it is

Preferring a smaller reward now to a larger one later, with the preference flipping as the "now" gets closer.

Related

• Exponential growth bias bias
  Both are mistakes about time: misjudging how fast things compound and how much later rewards are worth.
• Mental accounting bias
  Treating "now" and "later" money as different pots of money encourages present spending.
• Procrastination bias
  Procrastination is hyperbolic discounting applied to effort: the present cost of work outweighs a bigger later benefit.

Appears in

• The 99 thinking errors in Rolf Dobelli's The Art of Thinking Clearly#51: Hyperbolic discounting

References

• Wikipedia: Hyperbolic discounting en.wikipedia.org
• The 99 thinking errors in Rolf Dobelli's The Art of Thinking Clearly en.wikipedia.org
• Wikipedia: List of cognitive biases en.wikipedia.org
• Wikipedia: Cognitive bias codex en.wikipedia.org

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