Commit yourself

posted by
April 18, 2011
Reason
by Daniel Akst  
Posted in Commentary

"Precommitment doesn't just happen in movies. For years the economists Dean Karlan and John Romalis kept their weight down by means of a clever pact. Karlan and Romalis knew a little something about incentives, so they struck a deal: Each would have to lose 38 pounds in six months or forfeit half his annual income to the other. If both failed, the one who lost less would forfeit a quarter of his income. They lost the weight and generally kept it off, although, at one point, Romalis's weight popped back up over the limit and Karlan actually collected $15,000 from his friend. He felt he had no choice. He felt he had to take the money to maintain the credibility of their system, without which they'd both get fat." (for publication 05/11)

http://reason.com/archives/2011/04/18/commit-yourself  

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