Cutting up your credit cards in an effort to curb spending is an example of:
A)status quo bias.
B)a commitment device.
C)the endowment effect.
D)loss aversion.

Question

Quizplus · Accepted Answer

Cutting up your credit cards to curb spending is an example of a commitment device. A commitment device is a choice an individual makes in the present that restricts his/her own future actions. By cutting up credit cards, one is committing to not using them for future purchases, thus limiting the ability to spend impulsively.

Cutting Up Your Credit Cards in an Effort to Curb