Hyperbolic Discounting

The tendency to prefer smaller, immediate rewards over larger, later ones — with the preference growing stronger as the immediate option gets closer.

Our brains evaluate future rewards using a curved (hyperbolic) discount function rather than a steady one. The closer a reward gets, the more its value spikes relative to future alternatives.

• Choosing $50 today over $100 in six months.
• Opting for fast food now over cooking a healthier meal later.
• Spending a bonus immediately rather than investing it for greater future returns.

• Use commitment devices: lock away savings, set up automatic investments.
• Create distance from temptation — if you can't access it easily, you'll choose the future reward.
• Visualize your future self enjoying the larger reward.
• Add friction to impulsive choices (e.g., 24-hour waiting periods for purchases).