Saturday, October 23, 2010

heh. a new way to link the cash good credit good model (and thus how to include money into the RBC framework) with the idea of commitment technology : make food consumption the cash good.

simply, the opinion-ed suggests that if you want to limit your snacking tendencies, pay for all your food consumption expenditures in cash not credit. Intuitively, the finite supply of currency in hand is going to constrain your food expenditure, well at least until you find the nearest ATM machine.
and maybe the walk to the machine will give you the added time to rethink your decision as well


1 comment:

Jarrett said...

This is one of the first steps in any financial advisor's advice to get someone's house in order. That, and to just write down where you spend money (sort of like an anti-budget). The very fact you have to go through a slight, extra step is enough to change behaviour. I, for one, applaud this fascinating use of laziness to our advantage!