- ### __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)]]