There is “exponential discounting” and “hyperbolic discounting”, exponential discounting is discounting a future period of time, such as 1 year by a percentage. “Hyperbolic discounting’’ deals more self control issues, such as procrastinating or addiction. There was a great example to illustrate “hyperbolic discounting”; many people are of the belief that we should try to be good to the environment and not destroy it for our future generations. Yet on a daily basis we make decisions that do not support this belief. For example, many of us will buy bottles of water, instead of using a reusable bottle for their
There is “exponential discounting” and “hyperbolic discounting”, exponential discounting is discounting a future period of time, such as 1 year by a percentage. “Hyperbolic discounting’’ deals more self control issues, such as procrastinating or addiction. There was a great example to illustrate “hyperbolic discounting”; many people are of the belief that we should try to be good to the environment and not destroy it for our future generations. Yet on a daily basis we make decisions that do not support this belief. For example, many of us will buy bottles of water, instead of using a reusable bottle for their