I suspect there’s a bit of both going on but I’m fairly sure it’s not as dramatic a discounting as an 80% to 1% change (I realize your numbers were only illustrative of the idea). My feeling based on introspection of the decision making process when making a choice that favours short term gain over the more ‘rational’ longer term choice is that I am still fully aware of the negative consequences, I just discount them heavily.
If there’s one area where my judgements are distorted it is in my estimate of how likely I am to be able to ‘make up’ for present choices in the future. I think this is a fairly universal phenomenon and is also reflective of conflicts between present and future selves—I may eat the chocolate bar and commit my future self to exercise or a healthier eating regime but I am far too trusting of my future self and consistently underestimate his incentive to renege on any commitments I attempt to bind him to in the present.
In my personal history I have an unusually explicit example of present/future self conflict. When I was at university I made short term decisions which I explicitly justified to myself and others on the basis that I was making choices that my future self would have to pay for but that I anticipated my future self being a person who my present self would have no qualms about taking advantage of. I was aware of the fact that political views tend to move further to the right with age, as best expressed by the line “Show me a young conservative and I’ll show you someone with no heart. Show me an old liberal and I’ll show you someone with no brains.” and as a young liberal anticipated an older and wealthier conservative self who might not believe in wealth transfer. By taking out student loans I could commit my future self to a wealth transfer that suited my purposes at the time but that my future self would likely not approve of.
As it turns out, I was at least partially right about where my political views would move (though of course if I met my younger self now I would attempt to point out the many rational reasons why my views now are in fact more correct, and the many ways in which his understanding was overly simplistic). Overall I don’t begrudge my younger self the choices he made however, though that may only be because the commitments did not prove to be overly burdensome.
I suspect there’s a bit of both going on but I’m fairly sure it’s not as dramatic a discounting as an 80% to 1% change (I realize your numbers were only illustrative of the idea). My feeling based on introspection of the decision making process when making a choice that favours short term gain over the more ‘rational’ longer term choice is that I am still fully aware of the negative consequences, I just discount them heavily.
If there’s one area where my judgements are distorted it is in my estimate of how likely I am to be able to ‘make up’ for present choices in the future. I think this is a fairly universal phenomenon and is also reflective of conflicts between present and future selves—I may eat the chocolate bar and commit my future self to exercise or a healthier eating regime but I am far too trusting of my future self and consistently underestimate his incentive to renege on any commitments I attempt to bind him to in the present.
In my personal history I have an unusually explicit example of present/future self conflict. When I was at university I made short term decisions which I explicitly justified to myself and others on the basis that I was making choices that my future self would have to pay for but that I anticipated my future self being a person who my present self would have no qualms about taking advantage of. I was aware of the fact that political views tend to move further to the right with age, as best expressed by the line “Show me a young conservative and I’ll show you someone with no heart. Show me an old liberal and I’ll show you someone with no brains.” and as a young liberal anticipated an older and wealthier conservative self who might not believe in wealth transfer. By taking out student loans I could commit my future self to a wealth transfer that suited my purposes at the time but that my future self would likely not approve of.
As it turns out, I was at least partially right about where my political views would move (though of course if I met my younger self now I would attempt to point out the many rational reasons why my views now are in fact more correct, and the many ways in which his understanding was overly simplistic). Overall I don’t begrudge my younger self the choices he made however, though that may only be because the commitments did not prove to be overly burdensome.