Unit 2.4 · Critique of the Maximizing Behaviour of Consumers and Producers
Bounded Self-Control
AO3HL
Syllabus Requirement
Consumers may act against their long-term interests due to lack of discipline or impulse control.
Assessment Objectives
AO3Synthesis and Evaluation
Summary
Bounded self-control refers to the idea that consumers may make choices that go against their long-term interests because they struggle with impulse control, temptation, or short-term thinking. Even when people know what is best for them, they may still choose immediate satisfaction over future benefits. This challenges the traditional economic assumption that consumers always act rationally to maximize their long-term utility.