Asked by
James Manns
on Nov 25, 2024
Verified
Precommitments are a tool designed to overcome time inconsistency.
Time Inconsistency
The human tendency to systematically misjudge at the present time what will actually end up being desired at a future time.
Precommitments
Strategic decisions or investments made in advance to lock in certain behaviors, goals, or outcomes.
- Understand the concept of time inconsistency and its implications in decision-making.
Verified Answer
IB
Learning Objectives
- Understand the concept of time inconsistency and its implications in decision-making.
Related questions
Time Inconsistency Refers to the Persistent Underestimation of How Long ...
Time Inconsistency Refers to the Phenomenon Where Your Present Self ...
Time Inconsistency Refers to The ...
The Tendency of People to Discount Long-Term Values More Than ...
According to Behavioral Economics, One Major Cause of Self-Control Problems ...