Imagine that, if you have preferred receiving a smaller reward today over a larger reward three months from today, then you will always prefer the smaller reward over the larger reward regardless of when the smaller reward is offered as long as the difference between the rewards remains three months. In Kirby and Herrnstein's experiments, you would be exhibiting
A) exponential discounting
B) hyperbolic discounting
C) time-inconsistent discounting

Question

Quizplus · Accepted Answer

Exponential discounting implies a consistent preference over time, meaning if you prefer a smaller reward now over a larger reward later, you will always prefer the smaller reward regardless of when it's offered, as long as the time difference remains the same.

Imagine That, If You Have Preferred Receiving a Smaller Reward