Coase Colored Glasses

Tuesday, April 26, 2005

Trumping Incentives

Ive been thinking about incentives, about how to predict them etc. And i have been able to come up with three things that can trump, change, make people ignore incentives that were create. The three i have come up with are religion, jeleousy, and revenge.
Jeleousy and revenge are ususally irrational emotions that cause irrational (not always but most of the time). These can never be eradicated, and are hard to adjust for on every occassion, because they are irrational, these emotions crerate their own negative incentive.
Religion or religion hierarchy's to be more precise creates incentives. Take this link, now there isnt anything controversial or earthshattering, but it just illustrates that mandates by those higher up in the organization can change or influence the incentives of those that follow.

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