According to Behavioral Economists, Precommitments

question 310

Multiple Choice

According to behavioral economists, precommitments

• A)help people overcome their self-control problems caused by time inconsistency.
• B)do not fundamentally alter decisions because they do not change the benefits or costs of a particular action.
• C)end up being more costly, as people regularly violate them and incur penalties.
• D)overcome cognitive biases introduced by brain System 2.

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Definitions:

Informative

A characteristic of communication or data that provides new knowledge or insights.

Consequences

Consequences are outcomes or effects that result from an action or condition.

Hypothesis

A suggested explanation for an observable event, intended as an initial basis for additional exploration.

Explanandum

The subject or occurrence that is under investigation in a scientific exploration.