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Which of the following are relevant areas of preference inconsistency that Clocky is able to help? \(\left[\mathrm{LO}_{23} .3\right]\) a. The optimal volume for an alarm. b. What time to go to bed at night. c. What time to wake up in the morning. d. Whether an alarm should be placed on the bedside table or across the room.

Short Answer

Expert verified
Clocky helps with preference inconsistency by making the user place the alarm across the room.

Step by step solution

01

Understand the Concept of Preference Inconsistency

Preference inconsistency refers to situations where individuals have changing or conflicting preferences over time. In this context, a person might want one thing at a certain time but contradict that desire later.
02

Analyze Each Option for Inconsistency

Evaluate each option to determine if it involves inconsistent preferences wherein people's choices or decisions might conflict based on various factors across time. - **Option a:** The optimal volume for an alarm might be consistent depending on preference changes. However, it depends less on Clocky's unique features. - **Option b:** Choosing a bedtime is a decision where preferences may not directly change due to a Clocky feature. - **Option c:** Deciding what time to wake up could change based on the days of the week or personal events, but relates less to what Clocky helps with. - **Option d:** Whether to place an alarm by the bedside or across the room may vary since placing an alarm across the room encourages getting up to turn it off, which is directly related to Clocky's functionality.
03

Determine Which Option Clocky Helps Improve Consistency

Clocky is specifically designed to help with preference inconsistency related to placing an alarm such that it must be interacted with actively, helping maintain a consistent wake-up preference.
04

Conclude with the Relevant Option

Based on the analysis, place an alarm across the room (option d) is the area of preference inconsistency Clocky directly addresses, ensuring people physically get out of bed to turn off the alarm.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Decision Making
Decision making is the process of choosing between alternatives to achieve a desired outcome. This process, while simple in concept, can often involve complex considerations due to conflicting preferences or external factors.
In our context, the decision revolves around waking up in the morning and how an alarm can assist in that process.
Clocky, a unique alarm clock, introduces complexity by requiring the user to get out of bed to turn it off.
This forces users to make decisions about where to place the alarm.
Making decisions about alarm placement involves:
  • Weighing pros and cons: For example, if the alarm is near the bed, it's easy to snooze, but setting it across the room forces physical activity.
  • Adjusting to changing situations: Weekdays might require different decisions than weekends.
Inconsistent decisions, like moving the alarm closer just to hit snooze, reflect preference inconsistency.
Clocky's design helps users make consistent decisions by not allowing for easy reversibility.
Behavioral Economics
Behavioral economics examines how psychological factors impact economic decisions, often leading to preference inconsistency. This can occur when a person's short-term desires conflict with long-term goals.
For example, wanting extra sleep (short-term) conflicts with the goal of waking up on time (long-term). Clocky helps mitigate behavior contrary to stated preferences by making it harder to hit the snooze button.
This encourages users to behave in a way that aligns with their long-term intentions of getting up on time.
Key principles from behavioral economics observed with Clocky include:
  • Nudging: Encouraging desired behavior by altering the environment (e.g., alarm placement).
  • Commitment devices: Tools or hacks that help lock in a future action, like buying Clocky to prevent oversleeping.
Clocky is therefore a practical application of behavioral economic theories, transforming morning routines through deliberate changes in behavior.
Time Management
Effective time management is critical in balancing various tasks and preferences throughout the day.
It demands a mindful approach to organize and prioritize activities, ensuring one's schedule meets both personal and professional needs.
When it comes to waking up on time, alarms like Clocky play an integral part in managing one's morning schedule. A disciplined wake-up routine aids:
  • Establishing a regular sleep schedule: Promotes adequate rest and a more consistent waking habit.
  • Reducing morning rush: More time for essential morning activities without feeling hurried.
Clocky aids in these efforts by physically requiring the user to get up to silence the alarm.
This enforces a habit of getting up promptly at the desired time, cultivating a disciplined approach to time management.

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Most popular questions from this chapter

In each of the following scenarios, determine whether the change in people's behavior is the result of a nudge or a substantive change in economic incentives. [LO 23.1] a. A country with a low birth rate decides to offer free public child care for kids under the age of five. b. A nonprofit organization runs a highly publicized campaign offering teenage girls a very small symbolic reward (say, \(\$ 5\) ) for each week that they stay in school, come to support group meetings, and avoid pregnancy. c. A country with a rapidly growing population levies steep fines on any family that has more than two children. d. A government agency runs an ad on television informing women about low-cost birthcontrol options.

Choose the statement that people are more likely to choose based on the framing of the choice. \(\left[\mathrm{LO}_{23} .5\right]\) a. Stock investment: i. Invest in a stock with low uncertainty of return. ii. Invest in a stock with high certainty of return. b. Car purchase: i. Buy a car that costs \(\$ 20,000,\) which is \(\$ 5,000\) cheaper than the next level for that maker. ii. Buy a car that costs \(\$ 20,000,\) which is \(\$ 5,000\) more expensive than the lower level for that maker. c. Movie choice: i. Go to the movie that 100 out of 150 people give a five-star rating. ii. Go to the move that 50 out of 150 people give less than a five-star rating. d. Choice of college class: i. Take a class in which 50 percent of students get an \(A\). ii. Take a class in which 50 percent of students don'\operatorname{tg} e t ~ a n ~ \(\mathrm{A}\).

Determine whether each of the following represents loss aversion. [LO 23.2] a. Nearing retirement, an investor chooses investments with lower return and lower risk, because she wants to make sure she has a certain amount of money available in five years. b. A gambler refuses to play a game in which if heads shows up after a coin toss he will win $$\$ 40,$$ but if tails shows up he will lose $$\$ 50$$. c. Offered a brand-new blanket that is twice as comfortable and cute as her old onethe only two criteria she cares about in a blanket-a toddler refuses to give up her old blanket. The following information applies to Problems $$5,6,$$ and 7 7: Clocky \(^{\text {Th }}\) is an alarm clock that rolls off your bedside table and runs away when you hit the snooze button. When the alarm goes off again, Clocky will be hiding somewhere on the opposite side of your bedroom, so that you are forced to get out of bed to turn off the alarm.

Clocky is a commitment device to help overcome time inconsistency. Which of the following are the time periods over which someone might have inconsistent preferences and need Clocky's help? \(\left[\mathrm{LO}_{23} .3\right]\) a. Between the time the person hits the snooze button and the time the alarm goes off again. b. Between the time the person sets the alarm the previous night and the time the alarm goes off. c. Between the time the person actually gets out of bed one morning and the time he sets his alarm for the next morning.

In which of the following examples would we see the influence of a default option? (You can choose more than one.) [LO 23.4] a. A doctor recommends continuing treatment, but the ultimate decision of whether to continue treatment is left up to the patient. b. A website automatically checks the option "share my activity with my friends on Facebook" when users sign up. c. Pets from an animal shelter are automatically spayed or neutered unless the owner would prefer them not to be. d. A mobile phone user has to enter a choice at start-up between installing a special feature or not. The user is informed that most people choose to install the special feature.

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