- ### __Bias : __ - Hyperbolic Discounting - ### __Definition : __ - Discounting is the tendency for people to have a stronger preference for more immediate payoffs relative to later payoffs. Hyperbolic discounting leads to choices that are inconsistent over time. - ### __OODA Class : __ - Decide Phase - ### __OODA Subclass : __ - Strategy - ### __Classification Reasoning : __ - Hyperbolic discounting is based on the principle of least effort (choosing the path of least resistance). In time boxed environments, strategic decisions are generally aimed at making a decision which results in an immediate pay off. - ### __Example : __ - CMS versus hand coding websites: CMSs such as Wordpress, Drupal etc. provide a speedy way of implementing websites. Coding websites using websites on the other hand requires considerably more time but offers benefits in terms of being more customizable. - ### __Impact : __ - A website can be developed in relatively less time using a CMS. However, development of future features will be feasible if they do not require a high degree of customization. - ### __Debiasing Techniques : __ - Be mindful of future requirements when making a decision. Verify thoroughly if the option which results in quick pay offs is able to handle more complex requirements in the future. - ### __Related Biases : __ - [[Inconsistency (Bias)]]