PSYCHOLOGY
economics
psychology
patience
bias
Hyperbolic Discounting: $100 Now or $200 Later?
We are wired for instant gratification. We value the present disproportionately more than the future, leading to bad long-term decisions.
Economics / Psychology• 5 min read
The Present Bias
Would you prefer $100 today or $110 tomorrow? Most say $100 today. Would you prefer $100 in 30 days or $110 in 31 days? Most say $110 in 31 days.
Logically, the difference is the same (waiting 1 day for $10). But our brain applies a massive "discount" to anything that is not right now.