Management MGT 100 Study Guide - Midterm Guide: Ecotax, Marginal Cost, Burping
27 Feb 2017
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Chapter 1: the authors of freakonomics describe situations where people of all different walks of life who are otherwise honest, find ways to cheat to advance their position or increase monetary rewards when incentives are strong enough. What is an incentive: an incentive is a bullet, a lever, a key: an often tiny object with astonishing power to change a situation. A means of urging people to do more of a good thing and less of a bad thing: cheating is a prominent feature in just about every human endeavor. It is a primordial economic act: getting more for less. i. ii. Inside-trading ceos and pill-popping ballplayers and perk-abusing politicians. How did it different from most business models: early in the morning he would deliver bagels and a cash basket to a company"s snack room; he picked up the money and leftovers after lunch. It was an honor-system commerce scheme b: he collected data.
