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FreakonomicsBut if you perform so well that a rival company comes calling, you become a vice president and no longer have to work for your father. If you become so excited about your new vice president job that you drive home at eighty mph, you get pulled over by the police and fined $100. But if you hit your sales projections and collect a year-end bonus, you not only arenБЂ™t worried about the $100 ticket but can also afford to buy that Viking range youБЂ™ve always wantedБЂ”and on which your toddler can now burn her own finger. An incentive is simply a means of urging people to do more of a good thing and less of a bad thing. But most incentives donБЂ™t come about organically. SomeoneБЂ”an economist or a politician or a parentБЂ”has to invent them. Your three-year-old eats all her vegetables for a week? She wins a trip to the toy store. A big steelmaker belches too much smoke into the air? The company is fined for each cubic foot of pollutants over the legal limit. Too many Americans arenБЂ™t paying their share of income tax? It was the economist Milton Friedman who helped come up with a solution to this one: automatic tax withholding from employeesБЂ™ paychecks ...» |
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