Difference between revisions 109097398 and 109097399 on dewiki{{No footnotes|date=October 2008}} Given two similar rewards, humans show a preference for one that arrives sooner rather than later. Humans are said to ''discount'' the value of the later reward, by a factor that increases with the length of the delay. In [[behavioral economics]], '''hyperbolic discounting''' is a particular mathematical model thought to approximate this discounting process; that is, it models how humans actually make such valuations. Hy(contracted; show full)rm preferences with long term preferences. For instance: "Would you prefer a dollar today or three dollars tomorrow?" or "Would you prefer a dollar in one year or three dollars in one year and one day?" Typically, subjects will take less money today versus tomorrow, but will gladly wait one extra day in a year in order to receive more money.<ref>Thaler, R. H. (1981) Some Empirical Evidence on Dynamic Inconsistency. ''Economic Letters'' 8, 201-07.</ref> For example iIn studies of pigeons, for example the pigeon is given two buttons: button A provides a small amount of food quickly while button B provides more seed but after a delay. The bird then experiments for a while and settles on preferring A or B.<ref>[[George Ainslie (psychologist)|Ainslie, G. W]]. (1974) Impulse control in pigeons. ''Journal of the Experimental Analysis of Behavior'' 21,485-489.</ref> (contracted; show full) * Rachlin, H. (2000). ''The Science of Self-Control'' Cambridge;London: Harvard University Press * Raineri,A., and Rachlin, H. (1993). The effect of temporal constraints on the value of money and other commodities. ''Journal of Behavioral Decision-Making, 6,'' 77-94. [[Category:Cognitive biases]] [[Category:Behavioral finance]] [[pl:Hiperboliczne obniżenie wartości]] All content in the above text box is licensed under the Creative Commons Attribution-ShareAlike license Version 4 and was originally sourced from https://de.wikipedia.org/w/index.php?diff=prev&oldid=109097399.
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