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Economics glossary · The economic problem

Bounded self-control

What bounded self-control means in economics, as one of where real decisions depart from the model, with an example and a question to test yourself.

Definition
Bounded self-control
Bounded self-control is having less than the complete self-control the model assumes, so people give in to temptation or pay a price to guard against it.
Example

Can you think of an example of bounded self-control?

Test yourself

Can you name the four ways real decisions depart from the rational model?

Learn it properly: the module

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