When the value of future benefits is perceived to be lower than that of an alternative available right now, this phenomenon is known as present bias. Present bias is the tendency to overvalue immediate rewards at the expense of larger, later rewards, leading individuals to prefer smaller, sooner benefits rather than waiting for greater future gains
. This bias reflects time-inconsistent preferences, where people disproportionately discount the value of future outcomes compared to immediate ones, often resulting in decisions that favor instant gratification over long- term well-being. It is closely related to hyperbolic discounting, a cognitive process where the discount rate decreases over time, making immediate rewards seem much more valuable relative to future rewards
. Present bias can lead to behaviors such as procrastination, under-saving, excessive borrowing, and suboptimal investment choices, as individuals prioritize short-term consumption or rewards over future benefits
. Understanding present bias is important for designing interventions and policies that encourage better long-term decision-making.
