Behavioral Grooves Podcast

In this grooving episode, Kurt and Tim discuss Temporal Discounting and it’s closely related cousins. Temporal discounting is where we tend to value events in the near term more than similar events that are off in the distance. Another way to say it is that we discount – or reduce – our perceived value of events scheduled far off in the future. (The “timing” element is what gives it the name “temporal.”) This is a very common bias and is closely related to Hyperbolic Discounting, which is the tendency for people to have a stronger preference for more immediate payoffs relative to later payoffs. (Think of Seinfeld’s Nighttime Guy vs. Morning Guy.) And Temporal Construal, where near-term events are valued in very concrete ways, but distant-term events seem very vague. And, a slightly more distant relative in this family of biases is Preference Reversal. With Preference Reversal, we see how the relative preference for one option over another changes with order or framing, such as when we see it. All of these bia