Which of the following is NOT a commitment device?
A)A non-refundable advance payment to reserve a room at a resort.
B)A manufacturer's 2-year agreement to fix, at no cost to you, anything that breaks on your computer.
C)A pre-nuptial agreement that provides for a large penalty in the event a spouse has an affair.
D)High fines for illegal parking on campus.

Question

Quizplus · Accepted Answer

Agreements in advance, backed by a cost, to secure a promise are commitment devices. Fines levied after an offense are not.

Which of the Following Is NOT a Commitment Device