Hyperbolic Discounting

Interesting to note that most humans will devalue or discount something that has a time delay to the result. Studies show that most people would value $15 dollars just as much as $30 if seperated by a delay in receiving the extra money. This behavior pattern seems to be universal and is the cause of a wierd sort of reverse procrastination.

This becomes a problem in a high functioning person. In research by the IMD organization, they find that high functioning individuals will devalue or discount personally important things that could have long term benefit. For example, taking a break, going on vacation, or going to the gym. The problem is that we know that these activities are beneficial but we devalue the benefit because it is not immediate. What we do instead is continue to work, because solving a problem or fixing an issue, or winning a deal has more value to us because we simply discounted the value of the healthy activities. The longer the realized value the greater hyperbolic impact.

Point is that this is bad. It causes you to work on things that have less value then long term benefit.

Guy Reams

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
Share the Post:

Recent Blogs

Day 279 – Effects of Artificial Stress

After a challenging week backpacking in the wilderness, the author found their sleep quality dramatically improved compared to their restless nights at home. This experience highlighted the difference between ‘real’ stress encountered in nature and the constant ‘artificial’ stress from digital demands, suggesting that true rest may depend on the absence of these pervasive digital pokes at our nervous system.

Read More

Day 278 – The Process of Letting Go

This article redefines repentance as a practical method for letting go of past mistakes, emphasizing honesty, responsibility, self-forgiveness, and reframing the narrative to foster growth and move forward. It offers a structured approach to processing past actions without being paralyzed by them.

Read More

Day 277 – Root Cause Analysis

This article explores the concept of identifying and addressing the root causes of problems, rather than just treating symptoms. It uses the metaphor of a tree growing around a railroad spike to illustrate how small, unaddressed issues can become deeply embedded and harder to fix over time. The author emphasizes the value of problem discovery as a discipline that requires patience, courage, and a willingness to look beyond the obvious.

Read More

Day 276 – Eat the Frog Before 10 A.M.

This article advocates for tackling your most challenging or undesirable task first thing in the morning, ideally before 10 A.M. By “eating the frog” early, you gain momentum, avoid procrastination, and ensure that important commitments are not derailed by daily distractions, leading to a more aligned and productive day.

Read More
0
Would love your thoughts, please comment.x
()
x