How Many Paychecks? An Example of a Self-Imposed Constraint.
Many faculty members prefer to receive their salary in twenty-four equal payments over the entire year as opposed to receiving the salary sooner in eighteen equal payments over the academic year. The author considers two explanations for this choice: (1) it is chosen to eliminate transactions costs associated with administering a similar plan oneself or (2) it is chosen as a self-imposed constraint to insure against one's own potential imprudent behavior. The paper provides a test that clearly supports the second alternative. Copyright 1994 by Oxford University Press.
Year of publication: |
1994
|
---|---|
Authors: | Archibald, Robert B |
Published in: |
Economic Inquiry. - Western Economic Association International - WEAI. - Vol. 32.1994, 4, p. 696-702
|
Publisher: |
Western Economic Association International - WEAI |
Saved in:
Saved in favorites
Similar items by person
-
State Higher Education Spending and the Tax Revolt
Archibald, Robert B, (2004)
-
Labor Queues and Involuntary Unemployment.
Archibald, Robert B, (1977)
-
Trial-and-Error Learning and Economic Models.
Archibald, Robert B, (1989)
- More ...