The book begins with discussing about how people react to incentives, regardless of their form. Specifically, the Chicago Public School System implemented a bonus pay system for the teachers according to the students’ test scores. This increased the tendency of teachers overlooking the cases of cheating, seeking for economic benefit. Similarly, Israeli day care put much effort in burdening the parents to pick up their children on time by utilizing a fine. Parents who always came late started to be punctual, willing to avoid the penalty. Additionally, the authors then describe the case of Paul Feldman, who used the ‘honor system’ to run his bagel business. In detail, he requested his customers to voluntarily pay for the bagels for donation without
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An activist named Stetson Kennedy gradually found out the cause while trying to disband the organization; the company solely depended on its reputation for violent acts, not actually injuring innocent people. When the public acknowledged the false image of KKK, their interest eventually fell drastically. Likewise, real estate agents also take advantage of the ignorance of the public towards economic businesses conducted by experts. Specifically, real estate agents are prone to use specific terms when selling expensive houses, while they only use general terms when dealing with houses with a lower price in a short time. Moreover, real estate agents are apt to exaggerate the prices of the houses for individual profit, though the original price set by the seller is not even close to an exorbitant price. Conclusively, people are most likely to follow individualism and strive to gain their own economic advantages, mainly manipulating the impression of the general public. The idea itself was very simple, but as for me, it seemed that the excessive public unawareness could, in fact, create a risk of only wrongfully bestowing unreasonable economic benefits to the wealthy minority. Only the general public would unfairly suffer from lack of information, deprived of the right to
An activist named Stetson Kennedy gradually found out the cause while trying to disband the organization; the company solely depended on its reputation for violent acts, not actually injuring innocent people. When the public acknowledged the false image of KKK, their interest eventually fell drastically. Likewise, real estate agents also take advantage of the ignorance of the public towards economic businesses conducted by experts. Specifically, real estate agents are prone to use specific terms when selling expensive houses, while they only use general terms when dealing with houses with a lower price in a short time. Moreover, real estate agents are apt to exaggerate the prices of the houses for individual profit, though the original price set by the seller is not even close to an exorbitant price. Conclusively, people are most likely to follow individualism and strive to gain their own economic advantages, mainly manipulating the impression of the general public. The idea itself was very simple, but as for me, it seemed that the excessive public unawareness could, in fact, create a risk of only wrongfully bestowing unreasonable economic benefits to the wealthy minority. Only the general public would unfairly suffer from lack of information, deprived of the right to