Maximization of total output: Specialization maximizes the total output. By concentrating on the production of goods in which a party has a comparative advantage, it can produce more goods than if they had attempted to produce everything by themselves.

individuals can benefit from trade even when one party is less efficient in producing both goods. The theory underscores the importance of specializing in what one does best relative to others, based on opportunity cost, and trading with others to improve overall efficiency and wealth.

A key way to overcome present bias is through the automation of retirement savings through payroll deductions or direct transfers into retirement accounts such as 401(k)s or IRAs. Automation reduces the temptation to spend now, ensuring consistent savings before other expenditure.