Suppose there are two small island countries: Avarice, which is populated by people who are completely self-interested, and Altruism, which is populated by people who have adopted social norms of generosity and cooperation. Commitment problems will be:
A)largely avoided in Avarice, but prevalent in Altruism.
B)largely avoided in Altruism, but prevalent in Avarice.
C)prevalent on both islands.
D)largely avoided on both islands.

Question

Quizplus · Accepted Answer

A preference for generosity and cooperation will serve as commitment devices.

Suppose There Are Two Small Island Countries: Avarice, Which Is