Monday, September 29, 2014
Andre LaRenzie, Chapter 2, Question #6
In chapter 6 of "Naked Economics" by Charles Wheelan, the author discusses the modern day situation known as incentives. Incentives are basically what drive human choices. Especially when we think of self-interest. In particular, I read the passages of good intentions with bad outcomes, and was amazed. Especially about how it was indirectly more unsafe to require children to fly with a car seat. A good economist would link this situation to the fact that customers with kids will start driving because of the raised prices, and that driving is more dangerous than flying. The incentives of not paying more money led to more unsafe decisions, which is a practice of rational self-interest which is why this passage is so significant.
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