Hyperbolic Discounting - Deepstash
Hyperbolic Discounting

Hyperbolic Discounting

Hyperbolic discounting is closely related to myopic discounting and points out our tendency to choose immediate rewards over future ones, even when the immediate rewards are smaller. Succumbing to this tendency results in poor decision-making because it promotes impulsivity and immediate gratification, behaviours that prioritize short-term enjoyment over long-term wellbeing.

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Biases distort our cognitive system and prevent us from making rational decisions. The myth that we are reasonable creatures stems from the incorrect assumption that our brains are, by default, instruments of logic. Through analyzing the most common cognitive fallacies, we’re taken on a journey through the mechanics of the mind towards the root of our irrationality, which the author argues is due to motives shaping our judgment.

The idea is part of this collection:

The Philosophy Of Alan Watts

Learn more about psychology with this collection

Understanding the concept of the self

The importance of living in the present moment

The illusion of control

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