Setting up automatic payroll deductions to put a portion of your pay into a "Christmas account" is an example of:
A)status quo bias.
B)the endowment effect.
C)positive framing.
D)a commitment device.

Question

Quizplus · Accepted Answer

A commitment device is a choice an individual makes in the present that restricts his/her own future actions, making it easier to stick to good habits or intentions. Setting up automatic payroll deductions into a "Christmas account" is a way to ensure that money is saved for holiday expenses, thus committing future self to a savings plan.

Setting Up Automatic Payroll Deductions to Put a Portion of Your