Value falls steeply for the near future and shallowly thereafter, producing preferences that reverse as the moment arrives.
Ainslie's work. The reversal is the finding: asked in advance, people choose the larger later reward; asked at the moment, the same people choose the smaller sooner one.
In practice
- A saver signs up to a scheme that raises contributions out of every future pay rise, and would not have accepted the same rise from today's salary.
- Everyone signs up for the 7am gym slot in January and stops attending in February, and both decisions were sincere.