Today I suddenly became aware of how the term "discount rate" are frequently used in two different contexts:
When people prefer to have something now rather than in the future. The reason is supposedly human psychology. The discount rate in this case is inherent to the individual.
The same amount of money now is more valuable than in the future. The reason is that if one has that money now, he can invest and earn interest. The discount rate in this case is the real interest rate, determined by the market.
Am I correct in thinking that these are essentially two distinct phenomena subsumed under the same term? Or there is actually a deeper connection between them?