ABSTRACT

Time inconsistency refers to the phenomenon that a plan deemed optimal at some point in time may no longer be preferred from a future perspective, due to a change of preferences. In this talk, we will present some dynamic optimization problems in decision making that exhibit time inconsistency. We will introduce a game-theoretic framework to address the time inconsistency issue. Additionally, we will investigate a class of time-inconsistent problems – stopping under nonexponential discounting. Finally, we will discuss the mathematical challenges in the research of general time-inconsistent problems.