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An analysis of a Commitment Contract for Smoking Cessation (CARES)

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An analysis of a Commitment Contract for Smoking Cessation (CARES)
An analysis of a Commitment Contract for Smoking Cessation (CARES)

Maastricht University

School of Business & Economics

Place & date:
Maastricht, 23. January 2014

Names, initials:
Irene Lopez Santiago, Maxime Mülhausen, Léo Schwering

For assessor only

ID number:
I6075315, I6075392, I6075347

1. Content

Study:
EC, IB, IB

2. Language structure

Course code:
EBS 1001

3. Language accuracy

Group number:
Tutorial Group 15
Group A

4. Language: Format & citing/referencing

Tutor name:
Diogo Da Cunha Batista Geraldes

Overall:

Writing tutor name:
Diogo Da Cunha Batista Geraldes

Advisory grade

1. Introduction

It is very common for people to make New Year Resolutions that are easily broken, which is why there are many types of commitment schemes to keep resolutions, such as quitting smoking. A well-known everyday example of self-commitment problems is how people often engage in activities that they know to be harmful to them, for their immediate or long run best interests, such as smoking. However, people are often aware of their inability to change their habits, such as stop smoking or save more for their retirement. For this reason, there are several commitment programs around the world, with the aim being for consumers to commit themselves, to reach a long-term optimal decision. This paper analyzes one such scheme, presented in an article by Giné, Karlan and Zinman in 2009, known as the Committed Action to Reduce and End Smoking (CARES) product, and the efficacy and efficiency of the contract to stop smoking. This product was offered in the Philippines and supported by the Green Bank, aimed at smokers interested in quitting, to help them stop smoking, especially in the long term. The method used to evaluate CARES will be mainly the empirical cycle. The aim of this paper is to introduce the CARES program as an application of behavioral economics, while at the same time



References: Babbie, E. (2008). The basics of social research. (4th ed.). California: Thomsen Higher Education. Forzano, L. & Gravetter, F. (2009). Research methods for the behavioral sciences. (3rd ed.) Giné, X., Karlan, D., & Zinman, J. (2009). Put your money where your butt is, a commitment contract for smoking cessation http://www.oxforddictionaries.com/ whatiseconomics.org, (2012.)

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