From Wikipedia, the free encyclopedia.
Time preference is the economist's assumption that a consumer will place a premium on enjoyment nearer in time over more remote enjoyment.
This is particularly important in microeconomics. The Austrian School see time as the root of uncertainty within economics.
A high time preference indicates that a person puts a high premium on satisfying wants in the near future.
The time preference theory of interest is an attempt to explain interest through the demand for accelerated satisfaction.
