Chapter 1: What do School Teachers and Sumo Wrestlers Have in Common?
The authors describe how many people that are generally honest tend to find cunning ways of cheating to advance their position and gain recognition when incentives are strong. The book describes an incentive as an objective that urges people to do more good things or less of bad things. It also talks about three different incentives (Economic incentives, Social incentives, and Moral incentives).Economic incentives are incentives in which a person responds to their job or work status. Social incentives motivate people to react in a specific way because they car about their social image. Moral incentives apply to a person's morality between right and wrong. The three main studies …show more content…
He decided to implement a money basket to help solve his problem. The cheating still was apparent and this study showed that people were not above cheating, even when the bagel was only 95 cents. Another interesting analysis was that cheating was more apparent as the customer's income level of customers had increased. This means that people that made less money had more of a conscience than the people that made more money because in the smaller companies everyone would be able to tell if you stole the bagel rather than in the big companies. Incentives do mater and the way people respond to them is essentially the whole study of economics. In the beginning of this chapter, the book talks about a daycare center in Israel and the problem with tardy parents. Levitt decided to test this and suggested that they should implement a $3 fine to help with the problem. However the results were different because most parents were on time because they felt guilt (social/moral incentive), but once the find was enacted the parents only felt an economic incentive. Parents were using this fine to help remove the guilt. The title of the chapter is, “What do School Teachers and Sumo Wrestlers
The authors describe how many people that are generally honest tend to find cunning ways of cheating to advance their position and gain recognition when incentives are strong. The book describes an incentive as an objective that urges people to do more good things or less of bad things. It also talks about three different incentives (Economic incentives, Social incentives, and Moral incentives).Economic incentives are incentives in which a person responds to their job or work status. Social incentives motivate people to react in a specific way because they car about their social image. Moral incentives apply to a person's morality between right and wrong. The three main studies …show more content…
He decided to implement a money basket to help solve his problem. The cheating still was apparent and this study showed that people were not above cheating, even when the bagel was only 95 cents. Another interesting analysis was that cheating was more apparent as the customer's income level of customers had increased. This means that people that made less money had more of a conscience than the people that made more money because in the smaller companies everyone would be able to tell if you stole the bagel rather than in the big companies. Incentives do mater and the way people respond to them is essentially the whole study of economics. In the beginning of this chapter, the book talks about a daycare center in Israel and the problem with tardy parents. Levitt decided to test this and suggested that they should implement a $3 fine to help with the problem. However the results were different because most parents were on time because they felt guilt (social/moral incentive), but once the find was enacted the parents only felt an economic incentive. Parents were using this fine to help remove the guilt. The title of the chapter is, “What do School Teachers and Sumo Wrestlers