What is temporal discounting? (Part 1 of 2)

Economists discount the value of consumption goods over time. What does this mean, and how is it done? (Part 1 of 2)

[abbasjelodar]

Temporal discounting aka delay discounting means ignoring higher reward because of its longer waiting time it’s related to impulsivity, and thanks for the explanation .

[keithkatane]

Absolutely excellent. I'm learning about incentive design and this video has been a great help. Thank you.

[alanjoseph]

So higher temporal discounting means choosing immediate reward. While lower temporal discounting means choosing later rewards instead of current reward.