Hyperbolic Discounting

Hyperbolic Discounting, in its simplest form, refers to the tendency for people to increasingly choose a smaller-sooner reward over a larger-later reward as the delay occurs sooner rather than later in time. One standard test of this is to give a choice between a guaranteed reward now versus the chance of a larger reward at some point in the future.

One useful counter-measure is to ask: What is my choice based upon? Could I calculate the relative chances of each outcome more accurately?

For a full list of the most common biases, click here.