Intertemporal Incoherence Quiz
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Questions and Answers

What does the horizontal axis represent in the chart?

  • Reward size
  • Preference
  • Time (correct)
  • Decision maker's behavior
  • In the chart, what do the two lines represent?

  • Preferences related to two rewards (correct)
  • Different time periods
  • Rewards and penalties
  • Different decision makers' behaviors
  • What is the phenomenon called when preferences shift between the initial moment and the moment of choice?

  • Inter temporal rationality
  • Momentary inconsistency
  • Temporal preference reversal
  • Inter temporal incoherence (correct)
  • In a traditional view of inter temporal rationality, what is the expected behavior of the two curves representing preferences over time?

    <p>The two curves never intersect and change their position</p> Signup and view all the answers

    What does the intersection of the two curves in the chart signify?

    <p>Preferences have shifted over time</p> Signup and view all the answers

    In the chart, what does the solid line represent?

    <p>The larger but later reward</p> Signup and view all the answers

    What is the traditional view of inter temporal rationality regarding the relation between the two rewards over time?

    <p>The relation between the two rewards stays the same over time</p> Signup and view all the answers

    What phenomenon is observed when the two curves representing preferences intersect at different points in the chart?

    <p>Inter temporal incoherence</p> Signup and view all the answers

    What does the horizontal axis in the chart represent?

    <p>Time</p> Signup and view all the answers

    What do the two lines in the chart represent?

    <p>Preferences related to two rewards</p> Signup and view all the answers

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