Difference between revisions of "Time inconsistency"

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(Created page with '{{behavioral economics basicdef}} ==Definition== '''Time inconsistency''' is the phenomenon whereby a person's tastes and preference change over time, leading to a different ev...')
 
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'''Time inconsistency''' is the phenomenon whereby a person's tastes and preference change over time, leading to a different evaluation of the costs and benefits of a certain decision. For instance, time inconsistency may refer to the difference between the value a person puts to ''anticipating'' something, the value the person puts to ''experiencing'' it, and the value the person places on ''having experienced'' it.
 
'''Time inconsistency''' is the phenomenon whereby a person's tastes and preference change over time, leading to a different evaluation of the costs and benefits of a certain decision. For instance, time inconsistency may refer to the difference between the value a person puts to ''anticipating'' something, the value the person puts to ''experiencing'' it, and the value the person places on ''having experienced'' it.
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==Types of time inconsistency==
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* [[Time inconsistency due to procrastination]]: A long time before a deadline, a person may be indifferent to the precise deadline, but closer to the deadline, the person may value postponing the deadline, to the extent of being willing to pay for it or incur other costs.
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* [[Time inconsistency due to taste for anticipation]]
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* [[Time inconsistency due to addiction]]

Revision as of 01:10, 19 March 2009

This article gives a basic definition in behavioral economics.
View a complete list of basic definitions in behavioral economics

Definition

Time inconsistency is the phenomenon whereby a person's tastes and preference change over time, leading to a different evaluation of the costs and benefits of a certain decision. For instance, time inconsistency may refer to the difference between the value a person puts to anticipating something, the value the person puts to experiencing it, and the value the person places on having experienced it.

Types of time inconsistency