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The Incentives Lab
HBT-TIM-0002 · Dimension TIM · Time

Discount Rate

How much we value the present over the future.

Economics·Mental Model·Grade B·draft· enriching…

Scientific Definition

How much we value the present over the future.

Plain-English Definition

How much we value the present over the future.

Feynman Explanation

A dollar today is worth more than a dollar tomorrow. Usually too much more.

Core Principle

How much we value the present over the future.

Mechanisms

Psychological

Pending editorial review.

Behavioral Economic

How much we value the present over the future.

Neurological

Pending editorial review.

Evolutionary

Pending editorial review.

Sociological

Pending editorial review.

Computational

Pending editorial review.

Systems

High discount rates explain short-termism.

Inputs (Triggers)

Pending editorial review.

Outputs (Behaviors)

Pending editorial review.

Behavioral Signature

A dollar today is worth more than a dollar tomorrow. Usually too much more.

Examples

Everyday
  • Companies underinvest in maintenance because the payoff is delayed.
Modern (Organizational)
  • High discount rates explain short-termism.
Historical

Pending editorial review.

Famous Experiments

Pending editorial review.

Design Principles

  • Use lower discount rates for long-term strategic investments.

Measurement Approaches

Pending editorial review.

Evidence

Evidence Grade
B (A strongest → E speculative)
Replication
★★★☆☆
Intervention Confidence
3 / 5
Consensus
Pending editorial review (HBT v1.0 auto-seed).
Limitations
Pending editorial review (HBT v1.0 auto-seed).
Open Research Questions

Pending editorial review.

Primary References

Pending editorial review.

Signature Section

The Perverse Incentive Lens™

How this behavior is exploited — and how to redesign around it.

Exploitation
High discount rates explain short-termism.
Amplifying Incentives
High discount rates explain short-termism.
Org Failure Modes
High discount rates explain short-termism.
Societal Failure Modes
Pending editorial review (HBT v1.0 auto-seed).
Ethical Considerations
Pending editorial review (HBT v1.0 auto-seed).
Redesign Strategies
Use lower discount rates for long-term strategic investments.
Diagnostic Questions
  • Use lower discount rates for long-term strategic investments.
Warning Signs

Pending editorial review.

Red Flags

Pending editorial review.

Intervention Playbook
Individual
Use lower discount rates for long-term strategic investments.
Team
Pending editorial review (HBT v1.0 auto-seed).
Organization
Pending editorial review (HBT v1.0 auto-seed).
Policy
Pending editorial review (HBT v1.0 auto-seed).
AI Implications
Detection
Pending editorial review (HBT v1.0 auto-seed).
Measurement
Pending editorial review (HBT v1.0 auto-seed).
Mitigation
Pending editorial review (HBT v1.0 auto-seed).
Responsible Use
Pending editorial review (HBT v1.0 auto-seed).

Interactive Mini Network

Click any neighbor to re-center the graph and follow the threads of connection.

HBT-TIM-0002 · TIM
Discount Rate
DRTDTime DiscountingCoCompoundingFSFuture Self ContinuityHaHabitKHKeystone HabitMVMaker vs. Manager TimePDPath DependenceQDQuasi-Hyperbolic (β-…RSRepresentational Sys…RHRepresentativeness H…

Knowledge Graph Neighbors

Auto-linked to the rest of the Human Behavior Taxonomy by family, domain, dimension, and shared keywords.

Same family
HBT-TIM-0014Time Discounting

The relative valuation we place on rewards now vs. later — and how steeply we discount.

Same domain
HBT-TIM-0001Compounding

Small advantages, applied consistently, become uncatchable.

Same domain
HBT-TIM-0003Future Self Continuity

How vividly we connect to our future self predicts long-term decision quality.

Same domain
HBT-TIM-0004Habit

An automatic action triggered by a stable cue — built through repetition.

Same domain
HBT-TIM-0005Keystone Habit

A single habit whose adoption cascades into many other behavior changes.

Same domain
HBT-TIM-0006Maker vs. Manager Time

Creative work needs blocks of hours; managerial work runs on 30-minute slices. They destroy each other when mixed.

Same domain
HBT-TIM-0007Path Dependence

Where you can go is constrained by where you've been.

Same domain
HBT-TIM-0008Quasi-Hyperbolic (β-δ) Discounting

A present-bias kink (β) on top of exponential discounting (δ): immediate rewards get a bonus, all future rewards trade normally.

Same domain
HBT-TIM-0009Representational Systems

People preferentially process experience visually, auditorily, or kinesthetically. Match the channel; match the mind.

Same domain
HBT-TIM-0010Representativeness Heuristic

We judge probability by how similar an event is to a prototype.

Same domain
HBT-TIM-0011Three Horizons

H1 (managing the present) + H2 (transition mechanisms) + H3 (transformative futures) held simultaneously.

Same domain
HBT-TIM-0012Time Bias

Our decisions are influenced by when events occur or when we evaluate them.

Version History

v1.1.0 · 2026-06-28Initial auto-seed from corpus.