 |
| Source: cooladata.com |
Three major influences of motivation is Moral, social, and economic ¨The typical economist believes the world has not yet invented a problem that he can not fix if given a free hand to design the proper incentive scheme,” (Levitt) This chapter in freakonomics spoke on how there are three major influences on people in general, Moral, Social and Economic.
- The book used Cigarettes as a major example for all three.They mentioned when the government launched an ad campaign that pronounced Terrorist organizations made millions off of the selling and trading of cigarettes people here in the us had a moral conflict about buying Cigs and the demand went down. This shows us a solid example of how moral incentives can shift and move our economy.
- The social incentives controls us in ways such as when the government banned smoking cigarettes in bars that limited the social use in cigarettes which in turn affected the sale of cigarettes nationwide. Because people were no longer aloud to smoke with friends in bars they cut back on the amount of cigarettes they buy. This affected the supply demand of Cigarettes in a negatively way in that now the demand for cigs went significantly down.
- Economic incentives are the most common. But still also very powerful. Sticking with the theme of cigs, when the government put a $3 tax on every pack purchased the public had to seriously question if their fix was worth that extra three dollar and again we saw a dip in the demand of cigarettes.
- These small changes in tiny areas of our lives make big impacts in the business of selling cigarettes. These three examples all combined are what lead to the sharp decrease from 50.1% of the population smoking down to 16.4% of the population smoking according to the CDC. This chapter did a really good job of showing how our social actions moral conflicts and economic incentives actually matter in our economic world.
Future Question How the KKK is like a group of Realestate agents?
No comments:
Post a Comment