Madison Webster, Chapter 2, Question 6

A main point that everyone seems to be reiterating is Incentives. The example that specifically stood out to me was the one regarding Burger King. Each BK restaurant as a small sign by the cashier that says, "Your meal is free if you don't get a receipt. Please see a manager". By doing tnis, Burger King wipes the burden off their chest of having to worry about their employees making undocumented transaction and pocketing the cash. Burger King is the principal in the situation while the cashier is the agent. The cashier, "...has an incentive to do a lot things not necessarily in the best interest if the firm". Burger King could potentially use a lot of money trying to monitor their employees for dishonesty. I think that a lot of time, people will act in their own self interest when making decisions and comitting actions rather than focusing on their overarching control. I chose this topic to discuss just because I believe it is very relevant to our day in age. I am at an age where I am starting to look towards the future and what I want to do for the rest of my life. There are incentives that sway me one way or another (one being money) and I will act in my own self interest.

Slightly off topic, but related to the chapter as a whole, I think that the NFL should pay their players with an incentive of money. I know that each player is under contract for a certain team, but the value of money displayed to the player should be the maximum amount they can recieve. However, only if they work hard will they recieve this maximum amount. If they don't perform to their expected ability, they should get less money. This idea came to me when I was watching the Packer game last Sunday against the Bears. Sam Shields had a mis-tackle on Martellus Bennett and didn't do anything to recover. Shields simply laid on the field and didn't get back up and run after him. Even though Bennett is 6'6, Shields still should have gotten up and tried to tackle him again. I believe if players had an incentive to strive for, they would play at a higher level and at the entirety of their ability.