I think it is much more plausible that people use ad hoc heuristics developed to deal with these issues, than that we actually use a hyperbolic discount function.
Those issues seem pretty common. Why would nature not use hyperbolic discounting—and then use ad hoc heuristics to patch it in cases where it doesn’t apply?
Yeah, the paper Yvain linked, seems to be providing evidence that a hyperbolic discount function may be the first-order heuristic for handling such issues, with patches applied where appropriate.
Those issues seem pretty common. Why would nature not use hyperbolic discounting—and then use ad hoc heuristics to patch it in cases where it doesn’t apply?
Yeah, the paper Yvain linked, seems to be providing evidence that a hyperbolic discount function may be the first-order heuristic for handling such issues, with patches applied where appropriate.