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Economics

Hyperbolic Discounting and Procrastination in Saving

Quick fact

People may value $10 today as much as $20 in a year, but when the choice is between $10 in a year and $20 in two years, they often choose the larger future reward—showing how our preferences flip over time.

Why this is interesting

Ever promised yourself you'll save more next month, only to spend now? Why do our future selves always get the short end of the stick?