People tend to say that they would prefer to have $1000 today rather than $1200 two weeks from now-even though, logically, they would be better off with the $1200 in two weeks. The phenomena underlying this tendency is known as ____.
A) risk aversion
B) the certainty effect
C) temporal discounting
D) the status quo bias

Question

Quizplus · Accepted Answer

This phenomenon is known as temporal discounting, which refers to the tendency for people to value immediate rewards more than delayed rewards, even when the latter are objectively better. In this case, receiving $1000 today is an immediate reward, while receiving $1200 in two weeks is a delayed reward.

People Tend to Say That They Would Prefer to Have