April 2009
1 post
Matters of Love and Hyperbolic Discounting
If I ask which would you rather have: 100 pesos *now* or 500 pesos *after 6 months*, which pay-off would you choose? Research says that, given a similar situation, most people would take the former; people generally prefer smaller, earlier rewards to larger, later rewards. In behavioral economics this is called hyperbolic discounting, or how the future’s utility is ‘discounted’...