Which of the following is NOT a commitment device?

A. A pre-nuptial agreement that provides for a large penalty in the event a spouse has an affair.
B. A non-refundable advance payment to reserve a room at a resort.
C. High fines for illegal parking on campus.
D. A manufacturer's 2-year agreement to fix, at no cost to you, anything that breaks on your computer.


Answer: C

Economics

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