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Submitted by MamaMia7 on April 23, 2007
Category: Book Reports
Words: 1662 | Pages: 7
Views: 310
Popularity Rank: 45,119
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Chapter 1: What Do Schoolteachers and Sumo Wrestlers Have in Common?
This chapter's main idea is that the study of economics is the study of incentives. We find a differentiation between economic incentives, social incentives and moral incentives. Incentives are described in a funny way as "means of urging people to do more of a good thing or less of a bad thing", and in this chapter we find some examples public school teachers in Chicago, sumo wrestling in Japan, take care center in Israel and Paul Feldman's bagel business of how incentives drive people and most of the time the conventional wisdom turns to be "wrong" when incentives are in place.
I definitely agree with this, while reading this I could think of several examples that take place in Mexico's daily life, and this is a clever explanation for them: Policemen corruption. It is not that policemen are bad people or that they don't have morals, it is that the monetary incentive is strong enough so that they prefer to "cheat" and profit more from corruption than what they would earn by their monthly wage.
Within this discussion it is explained that incentives sometimes lead to cheating, because "something worth having is something worth cheating for". I think the incentives placed in daily life those that we can control, let's say, in our business should be established wisely, in order for them to have the desired effect, instead of fostering cheating among the business (like theft by employees and such). As we can see this happens to the government which such policies as the ones illustrated in the public school in Chicago ones.
From this chapter I mainly learnt that incentives are "the cornerstone of modern life" they drive our actions more than we notice, even unconsciously, they are there, and it would be useful if we are aware of this, in order to predict others behavior and probably would be useful too in negotiation.
Chapter 2: How is the Ku Klux Klan...
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