Economics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 21

The following information applies to Problems 5, 6, and 7: Clocky ™ is an alarm clock that rolls off your bedside table and runs away when you hit the snooze button. When the alarm goes off again, Clocky will be hiding somewhere on the opposite side of your bedroom, so that you are forced to get out of bed to turn off the alarm.
How much should someone with timeinconsistent preferences be willing to pay for Clocky?
a. Nothing, because a regular alarm will work just as well.
b. Something, because Clocky increases his utility by getting him up at the right time.
c. You'd have to pay him to use Clocky, because his utility is decreased by having to get out of bed and search around to shut off the alarm.