Day 2: Financial lesson and incentives
– Ppl respond to incentives
– Profit opportunities (to seek ones own advantage, for the “GOOD”
– We are all profit seeking by being at u of r
– Connect behavior to broader social concepts
– Child care at DC? you need a College degree (babysitting)
– The fact that => ppl respond to incentives has nothing to do with world u live in, organization
you are in
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It happens in all political and economical regimes
What is important is that Econ is not capitalism / communism / money
when u put a particular incentive on the play, you put MULTIPLE incentives on the game
Incentives don’t always work (look at composition book)
Policymaking experiment on lower income families (did it make them happier? |What
happened to your balances? They simply did not change.)
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Money and happiness. Does it make you happy or just happier than if u were broke?
Wallet experiment (100 USD, 1 000 USD, 10 000 USD) the 100 was stolen and the others were
not.
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Whistle blower protection: made to protect people who discover -bad- things about their own
company
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How fashion trends affect economy (domino effect???) Crocks as a trend => crock
decorations….
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Bees effects and average effects
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Paying for songs and movies versus getting them from illegal websites
Marginal effects