An assumption that is implicitly built in to the fully additive inter-temporal model is
A) Decision-makers can fully commit to their plan of action.
B) Decision-makers do not exhibit loss aversion.
C) Decision-makers do not exhibit overconfidence.
D) Decision-makers are risk-neutral

Question

Quizplus · Accepted Answer

The fully additive inter-temporal model assumes that decision-makers can fully commit to their plan of action, implying they can make decisions now and stick to them in the future without deviation. This is crucial for the model's predictions about future behavior to hold.

An Assumption That Is Implicitly Built in to the Fully