What is a commitment device?
What will be an ideal response?
A commitment device represent actions that individuals take in one period to try to control their behavior in a future period.
Economics
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What is the cost-minimizing equilibrium condition?
What will be an ideal response?
Economics
Students of microeconomic principles often say they are going to study "tonight," because the only way to pass the exam is to study some every night. When "tonight" comes, some students choose to do something else. Come exam day, these students do not do well on their exam. This observation is an example of how people
a. are inconsistent over time. b. are consistent over time. c. are mainly interested in fairness. d. are rational.
Economics