An Economic Theory of Self Control
By Richard H. Thaler & H. M. Shefrin
This is an area like the article Save More Tomorrow that I can apply my life experience to this article and my behavioral decision making. This is the topic that our team done our presentation on which I feel was extremely relevant. In relation to this article I feel that the author has supported his claims in all areas except saving and this was alluded to in the summary and conclusion. This reading however has very good examples that most people can say I do that. One example that I found interesting and so true was the Christmas club. Now I would consider myself very good with money however I take part in this club knowing that I am losing out on interest and possibly could be making better use of this money. However I joined this club since I started working six years ago as I knew I had a weakness and would not be able to save however now as stated above I am much better with money why have I not ceased this childish strategy.
I had to think about this and I can up with two reasons which I read in this article and Save More Tomorrow and the answer is in order to cancel it I have to print off a document and sign myself out which was too much work so I leave it there every year as I don’t miss it in my salary now as I am use to it and now I use it a saving. I also am a believer in the planner and doer and feel this can be taught over time and in my case marriage had a lot to do with. It’s like one of our most recent lecturers you are now making decisions with a families funds, compared to you in the singular in the past. This can be seen in business as well. Take for example a large lending decision if this was left to one person the result could be different compared to a committee decision.
The techniques to reduce conflicts in individuals and organizations in this article are very true and I agree with them all. In relation to rules and incentives I can relate to them...