The solution to a commitment problem:
A)must be a change in the material incentives.
B)is never a change in the psychological incentives.
C)must be a change in the psychological incentives.
D)can be a change in the material incentives,the psychological incentives or both.

Question

Quizplus · Accepted Answer

When it is impractical to provide a financial change in incentives,psychological ones can serve as commitment devices.

The Solution to a Commitment Problem