Hyperbolic discounting

gxjansen.com — Psychological Theory: We discount the value of the later reward, by a factor that increases with the length of the delay.Application idea(s) for E-commerce websites: Rewards later, are worth less then rewards right now. People rather have 50 right now then 60 in a month. But that is inconsistent if you change the timeframe: people prefer having 60 in 13 months, rather then 50 in twelve months, although the wait for the extra 10 is still one month.When you give discounts in your shop you need to take notice of this, or you can even play with it. If you have a points system in your shop you Nov 16, 2010 View in Crawl 4