The phenomenon of hyperbolic discounting is implicit in Richard Hernstein’s Law of Conformity, the discovery that most subjects allocate their time or effort between two continuous and non-exclusive sources of reward (concurrently variable interval patterns) in direct proportion to the rate and size of reward. rewards from two sources, and inversely proportional to their delays. The phenomenon of hyperbolic discounting is implicit in Richard Hernstein’s Law of Conformity, the discovery that most subjects allocate their time or effort between two continuous and non-exclusive sources of reward (concurrently variable interval patterns) in direct proportion to the rate and size of reward. rewards from two sources, and inversely proportional to their delays. In behavioral economics, hyperbolic discounting refers to the empirical finding that people tend to prefer smaller and faster gains over larger, later ones, when smaller gains are inevitable; but when the same achievements are distant in time, people tend to prefer more, even if the delay from smallest to largest is the same as before. [Sources: 1, 3]
Indeed, multiple studies have used hyperbolic discounting measures to find that addicts do not account for delayed outcomes more than corresponding independent controls, suggesting that extreme discounting with delay is a fundamental behavioral process in addiction. After reporting this effect in the case of delay (Chung and Herrnstein, 1967), George Ainslie pointed out that in the only choice between more later reward and less reward, the inverse proportionality of the delay would be described earlier. a delay diagram that was hyperbolic in shape, and that this shape should lead to a change in preference from more and then to a lower reward, initially only because the delays in the two rewards were reduced. [Sources: 0, 3]
People who use hyperbolic discounting have a strong tendency to make inconsistent choices over time: they make choices today that their future selves would rather not make, despite knowing the same information. In addition, the hyperbolic shape of the curves from single and discrete selection is only a manifestation of Herrnstein’s law of correspondence, which describes the same inverse proportionality of cost to delay in parallel and concurrent programs of unpredictable rewards (parallel VI-VI; Chung and Herrnstein 1967), where subadditivity would not be a factor. They retain much of the analytic controllability of the exponential discount, while at the same time reflecting the key qualitative characteristic of the discount using true hyperbolas. In cases where both alternatives are reasonably certain that they will occur, if chosen, this discounting model is dynamically incompatible and therefore incompatible with standard rational choice models, since the discount rate between times “t” and “t + 1” will be low at time “t-1”, when “t” is the near future, but high at time “t”, when “t” is the present, and time “t + 1” is the near future. [Sources: 0, 1, 2, 3]
Since then, many psychological studies have shown deviations in instinctual preferences from a constant discount rate adopted at an exponential discount. The most important consequence of hyperbolic discounting is that it creates time preferences for small rewards that occur earlier than larger and later ones. A standard experiment used to elicit a hyperbolic discounting curve for subjects is to compare short-term preferences with long-term preferences. According to hyperbolic discounting, ratings fall relatively quickly for earlier lag periods (for example, from now to a week), but then decline more slowly during longer lag periods (for example, more than a few days). [Sources: 0]
According to this hypothesis, the value of forthcoming awards will always increase, and the smoothing of the curves into an exponential shape that reflects sequential selection is what needs to be explained. The economist Robert Strots (1956) pointed out that people can recognize non-exponential discount curves in themselves and therefore expect their current plans to change in a predictable way over time; and behavioral psychologists Shin-Ho Chang and Richard Hernstein (1967) reported that pigeons working for food on two non-exclusive and unpredictable schedules (simultaneous VI VI) distribute their pecks in proportion to the inverse average food delivery delay, proving this. that the Herrnsteins comply with the law applies to delay. This likely requires that discount curves be hyperbolic and appetite a reward seeking process. Hyperbolic temporary actualization in drinking people and problem drinkers. [Sources: 1, 2]
Altered functional relationship associated with the actualization of time in chronic pain. Let the Music Play is an experimental study of background music and timing preferences. Ferrari, Linda Cavalier, Alessia De Marchi, Eliza and Bunterle, Alessandro, 2019. Joseph, Walter J. Cuccolo, Nicholas G. Chow, Ian Moroni, Elizabeth A. & Bierce, Emily H. 2020. [Sources: 4]
— Slimane Zouggari
##### Sources #####
[0]: https://en.wikipedia.org/wiki/Hyperbolic_discounting
[1]: https://en-academic.com/dic.nsf/enwiki/452991
[2]: https://www.picoeconomics.org/HTarticles/HDvCF/HDvCF2.html
[3]: http://taggedwiki.zubiaga.org/new_content/76d4ba3172db6cfb52b26251ead58091
[4]: https://www.cambridge.org/core/journals/science-in-context/article/models-of-temporal-discounting-19372000-an-interdisciplinary-exchange-between-economics-and-psychology/993C3C0EF0ED87BB493C966B3F6C012B