Asked by
Harison Samaratunga
on Oct 08, 2024
Verified
Precommitments are a tool designed to overcome time inconsistency.
Precommitments
Strategies or commitments made in advance to limit or define future actions or decisions.
Time Inconsistency
Time inconsistency refers to the situation where a decision-maker's preferences change over time, especially in ways that involve a conflict between short-term and long-term interests.
- Identify the consequences of temporal inconsistency and the application of precommitments to address issues of self-discipline.
Verified Answer
KM
Learning Objectives
- Identify the consequences of temporal inconsistency and the application of precommitments to address issues of self-discipline.
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