Time-consistent preferences The traditional way of modeling time preference assumes that people are time-consistent in their preferences. Time-consistent preferences:Preferences shared across all selves,so that future selves will not alter a plan that a previous self found optimal. Within the beta-delta model,preferences are time-consistent if,and only if,B=1. If B=1,the resulting utility function is said to exhibit exponential discounting because utility from period t is worth 6t as much as utility in the current period. Bhattacharya,Hyde and Tu-HealthEconomicsBhattacharya, Hyde and Tu – Health Economics Time-consistent preferences  The traditional way of modeling time preference assumes that people are time-consistent in their preferences.  Time-consistent preferences: Preferences shared across all selves, so that future selves will not alter a plan that a previous self found optimal.  Within the beta-delta model, preferences are time-consistent if, and only if, β = 1.  If β = 1, the resulting utility function is said to exhibit exponential discounting because utility from period t is worth δt as much as utility in the current period