precommitment

Precommitment is a decision-making strategy in which an agent imposes a constraint or binds their future choices to prevent deviation from a preferred course of action. It relies on the idea that people sometimes exhibit time-inconsistent preferences: what seems optimal today may be less so when the future self faces temptations or changed circumstances. By precommitting, an individual reduces the risk of future self-control failures and increases the likelihood of achieving long-term objectives.

Precommitment can take external or internal forms. External devices or arrangements impose penalties or friction to deter future deviations: automatic enrollment in retirement plans, penalties for early withdrawal, legally binding contracts, or locks on tempting goods. Internal forms rely on self-imposed rules or social commitments: public goals, deadlines, or commitments to others that create accountability. Environmental changes, such as removing temptations or structuring options to leave less desirable choices available, are also common precommitment strategies.

The concept is studied in economics, psychology, and public policy. In economics, precommitment is closely linked to time-inconsistency and the use of commitment devices to help individuals achieve self-consistent plans. Early formal treatments appeared in the time-inconsistency literature and were developed in macroeconomics and behavioral economics by researchers such as Strotz, Kydland and Prescott, and Schelling. In practice, precommitment informs personal finance (savings, debt reduction), health behaviors (diet, exercise), and policy design (default options, regulatory frictions). Limitations include potential costs, reduced autonomy, and imperfect enforcement, which can undermine efficacy if the terms are too lax or too onerous.