Precommitment—Setting Rationality Aside
Lecture no. 22 from the course: Behavioral Economics: When Psychology and Economics Collide
Taught by Professor Scott Huettel | 30 min | Categories: The Great Courses Plus Online Economics & Finance Courses
In “precommitment” strategies, we make binding decisions in the present for benefits in the future. Study precommitment in situations such as retirement savings, economic transactions, and organ donation programs. Learn how it works effectively when it is credible and costly, and how we can use it to improve our personal quality of life.