You may have never heard the term before, but you’re definitely familiar with hyperbolic discounting in your everyday life; we all do it. Hyperbolic discounting is basically the tendency most people ...

Imagine you’re given a choice between receiving P1,000 today and P1,500 after two months. What would you choose? Most people would opt for the immediate P1,000. This common preference for immediate ...

Hyperbolic discounting may sound mathematically intimidating but let me try to explain it to a seven year old. Imagine gathering seven year olds and asking them, “Would you like to receive…” Option A: ...

Long-term brand investments – those that build equity, reduce price sensitivity, and drive future growth – may be systematically misjudged by the very models used to evaluate them. After publishing ...

What is Hyperbolic Discounting, and how is it related to investing? Before I answer this, let me first give you a thought experiment. Below are three scenarios that I want you to consider. Carefully ...

Hyperbolic discounting behaviour can arise in experiments when expected utility maximising subjects who discount exponentially doubt the credibility of future pay-offs. In this paper the authors show ...

Anyone who’s watched Bridget Jones’s Diary knows one of her New Year’s resolutions is “Not go out every night but stay in and read books and listen to classical music.” The reality, however, is ...

You may have never heard the term before, but you’re definitely familiar with hyperbolic discounting in your everyday life; we all do it. Hyperbolic discounting is basically the tendency most people ...