Time inconsistency

This article gives a basic definition in behavioral economics.
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Definition

Time inconsistency, also called dynamic 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

• 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.
• Time inconsistency due to taste for anticipation
• Time inconsistency due to addiction