Emotions like guilt and sympathy:
A)are irrelevant to economic decision-making.
B)reduce the likelihood that a transaction will maximize total economic surplus.
C)can solve commitment problems,increasing players' payoffs.
D)can solve commitment problems,but generally reduce players' payoffs.

Question

Quizplus · Accepted Answer

Both financial and non-financial considerations can change incentives and serve as commitment devices.

Emotions Like Guilt and Sympathy