#presentbias

Present bias (hyperbolic discounting) is the willingness to take less if you get it instantly. It is the human tendency to to accept smaller payoffs instantly rather than having to wait for larger payoffs. This eliminates any thoughts of the future when you have to sacrifice in the present. For example in this article it says that when people are asked if they would rather have fifty dollars now or one hundred dollars tomorrow, people see that waiting until tomorrow to receive a greater amount of money is the best choice. Then it goes on to say that if someone was given the choice of  now or one hundred dollars in a year, most people would choose to take the fifty dollars. (the same thing they asked people in the mall on the video we watched) Most people would take the fifty dollars because it would increase their wealth right then and there instead of their wealth in the future. This can help my performance in the next round of the game. Instead of just buying stocks that look good today, I have to think about which stocks will be good to have not only right now, but in the future.