Definition & Meaning
What is the definition of present bias?
The tendency to focus on the present when making decisions, prioritizing faster payoffs over future ones.
What kind of reward does present bias make uses prioritize, even if it benefits us less?
Immediate rewards
What emotion often drives people to make impulse purchases?
Desire for immediate gratification.
True or false— Present Bias makes people more likely to prioritize long-term payoffs.
False
Why might someone skip saving for retirement and spend money on entertainment instead?
Because the fun is immediate, while retirement feels far away.
Why do people regret spending sprees later?
Because the short term happiness fades, but the financial consequences remain.
What type of payoff does present bias make us prefer:faster or delayed?
faster payoffs
Way might choosing fun now instead of studying for a test be an irrational decision?
Because short term fun feels good, but the long term consequence (a bad grade) is worse.
How does present bias affect decisions about paying bills on time?
People may delay bills to keep cash for fun now, even though late fees hurt them later.
Way do people often make less rational decisions when the outcome is immediate?
Because short term rewards feel stronger, so we give in to impulses instead of thinking long term.
How does present bias affect how we think about trade-offs between now and then?
It makes us overvalue what happens now and undervalue future benefits.
What mental strategy can help people resist present bias when making purchases?
Thinking about future consequences or visualizing their future self.