Erik wants to save more, but whenever a paycheck arrives, he ends up spending everything.
Erik wants to save more, but whenever a paycheck arrives, he ends up spending everything. One way to help him overcome this tendency would be to:
- Teach him about time inconsistency.
- Tell him that self-control problems are common.
- Have him engage in precommitments that will make it difficult for his future self to overspend.
5. Many proposers in the ultimatum game offer half to the responder with whom they are paired. This behavior could be motivated by (select as many as might apply):
- Fear that an unequal split might be rejected by a fair-minded responder.
- A desire to induce the responder to reject the offer.
- A strong sense of fairness on the part of the proposers.
- Unrestrained greed on the part of the proposers.