What behavioral bias is stickk.com designed to help overcome

Reference no: EM131309364

Economist Dean Karlan has opened stickk.com, a nonprofit entity that he calls a "commitment store." Individuals attempting to achieve a goal (to lose weight, to quit smoking, to write daily in a journal, etc.) authorize stickk.com to charge them a prespecified amount if they fail to reach their goal (as determined by a third-party referee).

a. What behavioral bias is stickk.com designed to help overcome?

b. Should they fail, subscribers are given the option of donating the fees to a charity they support or to an organization that they despise. Why might allowing the subscribers to direct their losses to a favorite charity weaken their resolve?

Reference no: EM131309364

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