Hyperbolic Discounting
Summary
- The closer a reward is, the more we are willing to give up in exchange for it.
Details
- Choice A: 1000$ in a year, or 1,200$ in a year and a month? majority chose the larger sum.
- Choice B: 1000$ now, or 1,100$ in a month? majority chose the 1,000$ immediately.
- They "now" skews things in our brains, even though the two questions are identical. But now makes things more attractive