Hyperbolic Discounting & Present Bias

prospect-theory
choices
preference-reversals

According to this bias, value is not discounted at a fixed rate over time, but closer rewards are valued much higher than distant ones, at a diminishing rate. In other words, we are happier to delay future rewards than present ones (“the immediacy effect”).

NoteExamples

Saving, dieting, planning

Think of the difficulty in saving (spending this weekend vs saving for next month), dieting (enjoying a meal now vs being slimmer in the future) and generally planning ahead.

“Let’s have some pasta, there’s still time for me to lose 3kg by July.”

Also relates to:Self-Control and Commitment · Loss Aversion · Excessive Optimism · Choice Bracketing