Commitment devices are:
A. methods to increase the price of your vices.
B. methods to lower the price of your virtues.
C. successful whether weak or strong, depending on the situation.
D. All of these statements are true.
D. All of these statements are true.
You might also like to view...
The U.S. Congress passed legislation in the late 1800 . that established land-grant universities to educate citizens in agriculture, home economics, mechanical arts, and other practical professions. Two important missions for land-grant universities are education and research. Explain how the establishment of land- grant universities has affected the growth of the U.S. economy
If a monopolist lowers its price to increase sales from 100 to 200 units, then the
a. price at the 200th unit will be less than the marginal revenue of the 200th unit b. price at the 100th unit will be greater than the marginal revenue of the 200th unit c. profit earned producing 200 units will be greater than the profit earned producing 100 units d. price at the 200th unit will be greater than the marginal revenue of the 200th unit e. profit earned producing 100 units will be greater than the profit earned producing 200 units
John is trying to decide whether to expand his business or not. If he continues his business as it is, with no expansion, there is a 50 percent chance he will earn $100,000 and a 50 percent chance he will earn $300,000. If he does expand, there is a 30 percent chance he will earn $100,000, a 30 percent chance he will earn $300,000 and a 40 percent chance he will earn $500,000. It will cost him $150,000 to expand. If John decides to expand based on expected value, it means that:
A. the sum of expected earnings from expanding and from not must exceed $150,000. B. his expected earnings from expansion must exceed $150,000. C. the difference in expected earnings from expanding versus not must exceed $150,000. D. the difference in expected earnings from expanding versus not must not exceed $150,000.
Since 1980, the public debt has
A. declined absolutely, but has remained constant as a percentage of the GDP. B. grown absolutely, but declined as a percentage of the GDP. C. declined absolutely and as a percentage of the GDP. D. grown absolutely and as a percentage of the GDP.