Dynamic Inconsistency
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A Dynamic Inconsistency is an inconsistency in decision-makers when preferences change over time in such a way that a preference can become inconsistent at another point in time.
- See: Present Bias, Preferences.
References
2016
- (Wikipedia, 2016) ⇒ https://en.wikipedia.org/wiki/dynamic_inconsistency Retrieved:2016-9-26.
- In economics, dynamic inconsistency or time inconsistency describes a situation in which a decision-maker's preferences change over time in such a way that a preference can become inconsistent at another point in time. This can be thought of as there being many different "selves" within decision makers, with each "self" representing the decision-maker at a different point in time; the inconsistency occurs when all preferences are not aligned.
The term "dynamic inconsistency" is more closely affiliated with game theory, whereas "time inconsistency" is more closely affiliated with behavioral economics.
- In economics, dynamic inconsistency or time inconsistency describes a situation in which a decision-maker's preferences change over time in such a way that a preference can become inconsistent at another point in time. This can be thought of as there being many different "selves" within decision makers, with each "self" representing the decision-maker at a different point in time; the inconsistency occurs when all preferences are not aligned.