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time inconsistent
A(n) person is neither irrational or rational.
Time inconsistency
when people change their minds about what they want simply because of the timing of the decision.
implicit cost of ownership
The is the cognitive bias documented by behavioural economists that leads people to value things more once they possess them.
commitment device
strategy or tool that allows people to place restrictions on later choices now so they can make better decisions in the future
sunk costs
costs that have already been incurred and cannot be recovered or refunded
Fungible
easily exchangeable or substitutable
overvalue
If the benefit you get from a good is concrete and immediate, you will it
undervalue
If the benefit you get from a good is abstract and distant good, you will it
undervaluing
People are prone to opportunity costs that are non-monetary
true
(T/F) Are commodities fungible?