Bundling Quotes

“The fact that addicts show fast discounting functions with preferences that change over time suggests two interesting related treatments: bundling and precommitment.
Bundling is a process whereby multiple rewards are grouped together so as to calculate the value of the full set rather than each individually.
A similar process is that of precommitment, where a subject who knows in advance that if given a later option, the subject will take the poor choice, prevents the opportunity in the first place. Economically, precommitment depends on the hyperbolic discounting factors that lead to preference reversals. Although many experiments have found that the average subject shows hyperbolic discounting, individuals can show large deviations from good hyperbolic fits. Computationally, an individual's willingness to precommit should depend on the specific shape of their discounting function.”
― A. David Redish