- [[behavioral economics]] # Idea Scenario 1: Do you want $1000 today or $1005 in 10 days? Many people will chose **$1000 today**. (Note that the difference is $5 and 10 days.) Scenario 2: Do you want $1000 in 100 days or $1005 in 110 days? Many people will choose **$1005 in 110 days**. (Note that the difference is also $5 and 10 days.) According to [[rational actor models]], people should choose the same option in both scenarios. So why do we choose differently in these two scenarios? We are [[hyperbolic discount function|hyperbolic discounters]]. We discount the near future much more than we discount the same amount/value the far future. # References