Question

Karen pays a trainer to enforce her fitness plan, despite the fact that she is capable of doing the routine on her own and could save money by not using the trainer. Neoclassical payoff-maximizing economic models would not predict this outcome, given that they assume people _________

Answer 1

According to the neoclassical theory and behaviroual economics:

Have unbounded willpower .

Explanation:

Reason: Since Karen is paying the trainer to build her willpower and make her do workout, it is violating the economic assumption that people have unbounded willpower.