Small, Immediate Gains More Tempting than Large, Long Term Gains Regarding Environment
We’ve all done the elementary school math story problem: Would you rather have $10,000 right now, or a penny doubled every day for a month? Well, in the end, those of us who were greedy enough to take the $10,000 right up front ended up poorer than those who took the penny.
This problem seems silly to us though. Now what about this one. Would you rather take $1,000 right now or $4,000 three years from now? Chances are, you chose the immediate cash. Psychologists use the term ”delay discounting” to describe our inability to resist the temptation of a smaller immediate reward in lieu of receiving a larger reward later. Most people choose the smaller, more immediate reward over the larger “patience is a virtue” reward.
And no matter what the context, discounting stems from three factors: a bias for the present; uncertainty; and projected resources. We are a people who thrive on instant gratification; that’s one reason we love TV so much. It is also a contributing factor to the current economic crisis (and debt in general).



