Commitment devices | Topics | tutor2u Economics

There is often a divide between intention and action especially for people with limited resolve and those vulnerable to temptation! The more public our position, the less willing we are to change it. We feel strongly about activities where we have made a personal commitment. Commitment contracts (devices) can reinforce decisions to adopt healthful behaviours. They impose a penalty if people do not reach a goal – invoking loss aversion. 

Examples of commitment devices might include:
Committing yourself to a diet using an online app
Commitment to joining a local savings scheme /credit union
Commitment signals to a partner using an expensive gif


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