Abstract
Many faculty members prefer to receive their salary in twenty‐four equal payments over the entire year as opposed to receiving the salary sooner, in eighteen equal payments over the academic year. I consider two explanations for this choice: (1) it is chosen to eliminate transactions costs associated with administering a similar plan oneself, or (2) it is chosen as a self‐imposed constraint to insure against one's own potential imprudent behavior. The paper provides a test which clearly supports the second alternative.
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