The term time inconsistency is used to describe:
A) a situation in which we regret choices we make simply because of when we made the choice.
B) a situation in which we change our minds about what we want simply because of the timing of the decision.
C) people's inability to correctly predict how their current choices will affect them in the future.
D) people's inability to make choices today that determine their actions in the future.

Question

Quizplus · Accepted Answer

Time inconsistency refers to the tendency to change our preferences as time passes. This means that we may make a decision today that we later regret because we have changed our minds about what we want. Option A refers more to the concept of hindsight bias, while option C is more related to the concept of intertemporal choice. Option D is not a clear definition of time inconsistency.

The Term Time Inconsistency Is Used to Describe