The start of a new year is a time that many of us make New Year Resolutions. Generally we have broken these before then end of January, but a new web site called Stickk.com aims to helps us keep the resolutions. Can economics help us rationalise the process of making resolutions? In the article below Tim Harford (the Undercover Economist) looks at incentives and what economics can tell us about New Year Resolutions.
Rationalising resolutions MSN Slate (22/12/07)
|1.||Assess the importance of incentives in determining people’s economic behaviour.|
|2.||How does the analysis of ‘rational behaviour’ help us understand the economic choices people make?|
|3.||Discuss the likely success of the business model developed by Stickk.com.|