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The Incentives Lab
HBT-TIM-0014 · Dimension TIM · Time

Time Discounting

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

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

Scientific Definition

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

Plain-English Definition

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

Feynman Explanation

A dollar tomorrow is worth less than a dollar today. By how much reveals the person.

Core Principle

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

Mechanisms

Psychological

Pending editorial review.

Behavioral Economic

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

Neurological

Pending editorial review.

Evolutionary

Pending editorial review.

Sociological

Pending editorial review.

Computational

Pending editorial review.

Systems

Capital allocation, R&D, and ESG decisions all bend under discounting.

Inputs (Triggers)

Pending editorial review.

Outputs (Behaviors)

Pending editorial review.

Behavioral Signature

A dollar tomorrow is worth less than a dollar today. By how much reveals the person.

Examples

Everyday
  • Hyperbolic, not exponential, discounting in most real-world choices.
Modern (Organizational)
  • Capital allocation, R&D, and ESG decisions all bend under discounting.
Historical

Pending editorial review.

Famous Experiments

Pending editorial review.

Design Principles

  • Make the discount rate explicit. Justify it.

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
Capital allocation, R&D, and ESG decisions all bend under discounting.
Amplifying Incentives
Capital allocation, R&D, and ESG decisions all bend under discounting.
Org Failure Modes
Capital allocation, R&D, and ESG decisions all bend under discounting.
Societal Failure Modes
Pending editorial review (HBT v1.0 auto-seed).
Ethical Considerations
Pending editorial review (HBT v1.0 auto-seed).
Redesign Strategies
Make the discount rate explicit. Justify it.
Diagnostic Questions
  • Make the discount rate explicit. Justify it.
Warning Signs

Pending editorial review.

Red Flags

Pending editorial review.

Intervention Playbook
Individual
Make the discount rate explicit. Justify it.
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-0014 · TIM
Time Discounting
TDDRDiscount RateCoCompoundingFSFuture 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.

Version History

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