Kreps and Porteus Preferences

Kreps and Porteus Preferences are a concept in economics that describe how people consider future outcomes when making decisions. These preferences show that individuals value their future consumption based not just on what they receive but also on when they receive it. They can express a strong preference for delaying gratification for the sake of future rewards. This framework is important in understanding savings, investment choices, and how people manage risks over time, as it highlights the role of patience and timed rewards in decision-making.