Naked Economics Chapter 2 Summary: Incentives Matter<!-- --> | <!-- -->Assume Wisely
Naked Economics Chapter 2 Summary: Incentives Matter

Naked Economics Chapter 2 Summary: Incentives Matter

Posted: January 7, 2009

30-53 Why you might be able to save your face by cutting off your nose (if you are a black rhino)

Theme - Misaligned incentives

53- how is it that a country can put a man on the moon and still have people sleeping on the street?

  • Rocket Science vs drug addicts and 16 year old teens
  • People seek to make themselves better off, however they may define that.
  • Our best hope is to understand why we act the way we do, and plan accordingly.
  • Programs, organizations, and systems work better when they get the incentives right.

31 - communal resources VS private property IE “rhino ranchers”

  • Rats vs rhinos
  • Free riders
  • Incentives to hunt rhinos outnumber the disincentives

34- adam smith butcher quote

  • Microsoft example
  • Berlin wall, east german car company
  • India, owned byt the state
    • North Korea

35- dependence on foreign oil & CO2 emissions

36- Adverse Selection

  • teacher salaries

36-37 Perverse incentives

  • Law of unintended consequences
  • Requiring car seats on planes might result in more injuries and deaths to children Mexican smog

38- good use on incentives

  • london

Git Sum (un)common sense,

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© 2009 · Rho Lall