“I precommit to shop at the store with the lowest price within some large distance, even if the cost of the gas and car depreciation to get to a farther store is greater than the savings I get from its lower price. If I do that, stores will have to compete with distant stores based on price, and thus it is more likely that nearby stores will have lower prices. However, this precommitment would only work if I am actually willing to go to the farther store when it has the lowest price even if I lose money”.
You’ve described the mechanism by which the precommitment happened, not actually disputed whether it happens.
Many “irrational” actions by human beings can be analyzed as precommitment; for instance, wanting to take revenge on people who have hurt you even if the revenge doesn’t get you anything.
“I precommit to shop at the store with the lowest price within some large distance, even if the cost of the gas and car depreciation to get to a farther store is greater than the savings I get from its lower price. If I do that, stores will have to compete with distant stores based on price, and thus it is more likely that nearby stores will have lower prices. However, this precommitment would only work if I am actually willing to go to the farther store when it has the lowest price even if I lose money”.
Miraculously, people do reliably act this way.
I doubt it. Reference?
Mostly because they don’t actually notice the cost of gas and car depreciation at the time...
You’ve described the mechanism by which the precommitment happened, not actually disputed whether it happens.
Many “irrational” actions by human beings can be analyzed as precommitment; for instance, wanting to take revenge on people who have hurt you even if the revenge doesn’t get you anything.