What is hyperbolic discounting?
A) the tendency to place much greater importance on the immediate present than even the near future when making economic decisions
B) the use of a positive discount rate that exceeds the real interest rate
C) the valuing of future benefits at an exponentially higher rate than current benefits
D) the ability of people to psychologically discount losses more than gains

Question

Quizplus · Accepted Answer

Hyperbolic discounting is a cognitive bias where individuals give disproportionately higher value to rewards that are immediate over those that are in the near or distant future. This leads to preferences for smaller, immediate rewards over larger, delayed ones, even when the delayed rewards offer a better return.

What Is Hyperbolic Discounting