Present Bias

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August 31, 2024 3 min read Definitions
Hyperbolic Discounting: Time Preference and Behavioral Economics
Economics Behavioral Economics Hyperbolic Discounting Time Preference Present Bias Quasi-Hyperbolic Discounting Behavioral Finance
An assumption on the rate of time preference that reflects a bias towards present rewards. Hyperbolic discounting contrasts with exponential discounting where the discount rate between any two periods is constant.
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