Effect Of Hyperbolic Discounting - A Cognitive Bias
Authors
Kankanala, Kausika Priya
Issue Date
2019-03-29
Type
Other
Language
en_US
Keywords
Cognitive bias , Hyperbolic discounting
Alternative Title
Abstract
Hyperbolic Discounting is a cognitive bias, where people’s tendency will be to over-value immediate rewards at the expense of their long-term intentions . When offered a larger reward in exchange for waiting a set amount of time, people act less impulsively (i.e., choose to wait) as the rewards happen further in the future. This bias is considered as “time inconsistent” , because reward valuation falls rapidly with small periods of delay and then slowly for longer delay periods.