Or, as one expert puts it:
Discount RateThis means that people with high discount rates don't cooperate well, and are therefore bad types.A discount rate implies that the value of future payoff is less than a current payoff for the same amount. If someone offered you $100 today or $100 in ten years, you would take the money today, invest it, and have a larger sum in ten years. In the iterated prisoner's dilemma, the higher the discount rate the lower the value of the future; this implies that the higher the discount rate the less likely cooperation will emerge.