A person setting up automatic deductions through their employer so a portion of their pay goes 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

This is an example of a commitment device, as the person is setting up automatic deductions to ensure that they save money for Christmas rather than relying on their own willpower to set aside money. A commitment device is a strategy used to help individuals follow through with their intentions by limiting their future choices.

A Person Setting Up Automatic Deductions Through Their Employer So