How Does the Concept of ‘Time Preference’ Relate to Paying a Higher Fee or Accepting Slippage?

Time preference, in economics, is the relative valuation of a good or service at an earlier date compared to a later date. It directly relates to paying a higher fee or accepting slippage.

A user with a high time preference values immediate execution (fast confirmation or instant trade) more than a lower cost. They will therefore pay a higher crypto fee or use a market order (accepting slippage risk) to ensure immediacy.

A user with a low time preference is willing to wait (use a zero fee or a limit order) to minimize cost.