>Time preference theories of interest are unsatisfactory, because for them to make sense, lenders must have perfect knowledge about the future and be perfectly

>Time preference theories of interest are unsatisfactory, because for them to make sense, lenders must have perfect knowledge about the future and be perfectly aware of competing usages of money at any point in the lending window. This is just wrong. Time preference doesn't require lenders to have perfect knowledge, it also describes how two lenders with access to similar (necessarily incomplete) information about the future would behave differently due to different time preferences.