10 Questions
What does the horizontal axis represent in the chart?
Time
In the chart, what do the two lines represent?
Preferences related to two rewards
What is the phenomenon called when preferences shift between the initial moment and the moment of choice?
Inter temporal incoherence
In a traditional view of inter temporal rationality, what is the expected behavior of the two curves representing preferences over time?
The two curves never intersect and change their position
What does the intersection of the two curves in the chart signify?
Preferences have shifted over time
In the chart, what does the solid line represent?
The larger but later reward
What is the traditional view of inter temporal rationality regarding the relation between the two rewards over time?
The relation between the two rewards stays the same over time
What phenomenon is observed when the two curves representing preferences intersect at different points in the chart?
Inter temporal incoherence
What does the horizontal axis in the chart represent?
Time
What do the two lines in the chart represent?
Preferences related to two rewards
Test your understanding of intertemporal incoherence with this quiz. Explore the depiction of intertemporal rationality through traditional economic theories and choice behavior. Analyze a chart representing time and preference to enhance your knowledge of this concept.
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