A person is dynamically inconsistent if:
A) lapses in self-control never occur.
B) his preferences over the alternatives available at some future date do not change as the date approaches or once it arrives.
C) he does not always follow through on his plans and intentions.
D) All of these are sufficient for dynamic inconsistency.

Question

Quizplus · Accepted Answer

Dynamic inconsistency refers to situations where a person's preferences change over time, leading to a lack of consistency in decision making. This lack of consistency may manifest as a failure to follow through on plans and intentions, which is captured in option C. Hence, option C is the best choice. Option A is incorrect because it describes a situation of perfect self-control, which is unlikely to exist. Option B is incorrect because it describes a situation of perfect foresight, which is also unlikely to exist. Option D is incorrect because it includes all the options without clearly identifying which among them is sufficient for dynamic inconsistency.

A Person Is Dynamically Inconsistent If