Hyperbolic Discounting: The science behind outsmarting yourself
By: Jennifer Clinehens
Tags: Health, Personal Development, Psychology, Self Improvement, Life

Hyperbolic Discounting: The science behind outsmarting yourself

Psychology and behavioral science hold the keys to creating healthy habits

Photo by Marco Testi on Unsplash

Have you ever made a plan to go to the gym first thing in the morning? You had the best intentions the night before, but when the alarm clock went off at 5 am, you found a flimsy excuse to avoid your workout?

It’s not just an early morning gym habit that people have a hard time following through on. It might be saving for retirement or avoiding sugar.

Why is it so hard to do things that we know are good for us in the long run but are uncomfortable in the moment? It’s down to a behavioral science principle known as hyperbolic discounting.

What is hyperbolic discounting?

Hyperbolic discounting is a mental model — a way of thinking. This principle describes how humans are hardwired to value immediate rewards — like sleeping in — over long-term rewards, like being fit. That means people have to outwit their own brains to perform temporarily painful tasks that create long term gains.

Hyperbolic discounting means we are hardwired to value immediate rewards like sleeping in, over long-term rewards like being fit.

How to win the battle for Future You

Humans think of their “present self” and their “future self” as two different people. That’s why it’s easier to stay in bed than go for an early morning run.

Not being in shape is Future You’s problem. Present You’s concern is getting out of a warm bed, changing out of your pajamas, and going out in the cold to do something uncomfortable.

Your brain is hardwired to say, “Forget that. Being out of shape is Future Guy’s problem.” And we stay in bed.

Strategies for outsmarting yourself

So how do we outwit Present You so that Future You gets the benefits of your hard work? Here are a few strategies that can help you outsmart yourself.

1. Put “Future You” front and center

The reason hyperbolic discounting often wins is that we have a hard time imagining ourselves aging. To a 20-year-old, 65 feels impossibly far away. So far away that it doesn’t seem real. But research shows that if you can make Future You more tangible now, it will impact your behavior.

For example, The University of Melbourne conducted a study to try and increase savings rates. Researchers gave participants a choice: Get a cash payment now, or get a more significant deposit straight into a savings account one year in the future.

Halfway through the experiment, however, participants saw a digitally aged photo of their faces. Researchers then led them through an exercise to empathize with their future selves.

After connecting with their older selves, 75% of people changed their mind about the payment. Instead of getting cash now, they opted to get more money put into their savings account one year in the future.

How to apply this strategy:

Download a free face changing app like AgingBooth. Take a photo and age yourself, then print it out. Put it somewhere conspicuous, like on your fridge, next to your bed, or on your treadmill.

As Professor Phil Harris from The University of Melbourne put it:

“…our research shows that people can be nudged to increase [the quality of ] decisions simply by visualizing the connection between themselves now and in the future more clearly.”

Next time you’re tempted to let Present You win, take a look at Future You and see if they change your mind.

2. Raise the stakes with social motivation

Also known as competition, research has shown that social motivation increases adherence to healthy habits, physical effort during a workout and can even improve reaction times.

For example, Peloton — the digitally-connected spin bike — has a community of more than 2 million users that compete for spots on their class leaderboards. Your effort in the class determines your ranking, and competition is fierce.

How to apply this strategy:

Before applying this strategy, ask yourself if you like competition. Some people are more motivated by competition than others, and it causes some people to shut down completely.

If you’re motivated by competition, try to find ways to compete with others. This might take the form of an app like Strava.

Even a fitness wearable like an Apple Watch or Fitbit can create enough competition to motivate people. A 2019 study found that adding a competitive element to tracking exercise with a wearable increased the amount of time people spent being physically active.