10 Problems With How We Think

11 / 11
11 / 11

Discounting Delayed Rewards

If offered $50 today or $100 in a year, most people take the money and run, even though it's technically against their best interests. However, if offered $50 in five years or $100 in six years, almost everybody chooses the $100! When confronted with low-hanging fruit in the Tree of Life, most humans cannot resist plucking it.

This is best summed up by the Ainslie-Rachlin Law, which states, "Our decisions... are guided by the perceived values at the moment of the decision - not by the potential final value."

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