Tuesday, September 30, 2014
Jonathan Webb, Chapter 2, Question 6
The passage or passages that stood out to me was how incentives matter. It's common sense that the higher the price is the less people will buy or like he said, if someone works on commission, most likely they'll work harder. But him giving many different examples of the subject really helped me understand it a lot more and made it more interesting. The examples he gave about "perverse incentives" were very interesting. Just the fact that how simple you might think fixing one problem can be, can turn out hurting many people that you did not think could happen. The Mexico example he gave, just have a day where you can't drive that certain car. Well people responded totally different to what they thought would happen and it turned into a bad incentive. That's crazy. Knowing how important it is to go in depth with solving certain problems (that might seem simple) can have have a dramatic change on that certain outcome.
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