Asked by Meadow Smith on May 09, 2024
Verified
Under hyperbolic discounting, a person discounts the long term future more heavily than the near term future.
Hyperbolic Discounting
A behavioral economics theory that describes how people disproportionately value present over future benefits, leading to preferences that decline hyperbolically over time.
Long Term Future
Refers to an extended period ahead, often beyond several years, during which strategic planning or forecasting is considered.
Near Term Future
A period of time that is immediately ahead, often used to describe the timeframe in which upcoming events or changes are expected to occur.
- Become familiar with the dynamics involved in selecting options over time and the practice of discounting.
Verified Answer
TB
tasha brooksMay 15, 2024
Final Answer :
True
Explanation :
Hyperbolic discounting is a type of time discounting where the value of future rewards is discounted more heavily as the time to receive them increases. This means that people will place a higher value on receiving a reward in the near future compared to receiving the same reward in the distant future.
Learning Objectives
- Become familiar with the dynamics involved in selecting options over time and the practice of discounting.