Behavioral Economics · intro
What moves on the Hyperbolic Discounting & Present Bias diagram
Hyperbolic discountingdiscountingConverting future values into today's terms, because a dollar later is worth less than a dollar now. devalues near-term delays most sharply, so choices flip as dates approach.
A month out, you value future-you's plans sensibly.
As 'later' becomes 'now', the hyperbolic curve dives, present bias sharpens.
The essay planned for last week loses to tonight's episode, again. Distance made you patient; proximity broke it.
Examiners ask this as: procrastination deadline, present bias kicks in.
Other scenarios on Hyperbolic Discounting & Present Bias