Comparing Patience: Steeper vs. Shallower Indifference Curves
The degree of intrinsic impatience can be compared between individuals by examining the steepness of their indifference curves at a common point. [1] A person with a steeper indifference curve is considered more impatient because they require a larger amount of future consumption to compensate for giving up a unit of present consumption. For example, a person who needs $20 tomorrow for a $10 loss today is more impatient than Julia, who has a shallower indifference curve and only requires $12 tomorrow for the same loss. [1] Her shallower curve indicates she is more patient. [1]
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