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About: Present bias     Goto   Sponge   NotDistinct   Permalink

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Present bias is the tendency to rather settle for a smaller present reward than to wait for a larger future reward, in a trade-off situation. It describes the trend of overvaluing immediate rewards, while putting less worth in long-term consequences. The present bias can be used as a measure for self-control, which is a trait related to the prediction of secure life outcomes. In the field of behavioral economics, present bias is related to hyperbolic discounting, which differ in time consistency.