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

Chosen Humility

This article explores the difference between humility forced by suffering and chosen humility. Drawing parallels to the American Civil War, the author argues that while forced humility can teach valuable lessons, choosing humility before adversity strikes is a rarer and more profound strength.

Read More

Day 287 – Get Out of the Cave

When facing a mental block, staying in the same environment can be counterproductive. This article suggests that a simple change of location, especially stepping outdoors, can provide a fresh perspective and help overcome creative or problem-solving hurdles.

Read More

Day 285 – Everyday Fountain of Youth

A wilderness trip highlights the profound importance of water, contrasting the struggle for it in nature with its abundance at home. This experience connects to the ancient legend of the Fountain of Youth, suggesting that clean, accessible water is a daily miracle often taken for granted.

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