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A cognitive bias which explains why people prefer smaller, immediate rewards rather than larger rewards in the future.
Similar psychology:
Likely impacts:
If your product's value is long term, e.g., investing, hyperbolic discounting could cause an increase in churn, as users see cash leave today for a distant benefit.
You may see lower usage of features framed around long-term benefits with short-term trade-offs, as hyperbolic discounting pulls users towards immediate rewards.
Hyperbolic discounting might make it harder to help users stick to long-term habits, as they slip into habits offering quicker, short-term rewards instead.
Offering small, immediate rewards could boost users' motivation to take effortful actions, as hyperbolic discounting makes instant payoffs feel more valuable.