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I need help creating a thesis and an outline on Importance of Incentives in the Book Freakonomics. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is requ
I need help creating a thesis and an outline on Importance of Incentives in the Book Freakonomics. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. The authors show how incentives are an extremely important facet of modern life, how small events can have large effects, how experts use the information to their advantage, and how knowing how to properly measure and gauge can lead to a greater understanding of the hidden effects of economics and the world in general.
First, the authors illustrate how incentives work. In the view of the authors, the modern capitalist world and economics in general function based on incentives. The key to incentives is to always attempt to discern how exactly they affect people and to what extent. By doing so, people are able to maximize whatever profits they are looking to make. The example that they use is of real-estate agents. As the authors explain it, it is not typically in real-estate agents best interests to put the amount of effort into selling a house for the absolute best price possible because the amount of their commission won’t be significantly higher for the amount of effort it would take to do so. We can see how specifically this is true by examining how real-estate agents behave when selling their own houses. Actually, this is one exercise that the authors go back to time and time again. in order to determine whether or not an expert in a particular field is, in fact, serving your best interests.
This might seem to be the most obvious way to approach something, but it is a practice that is highly effective and that people don’t generally utilize. As people generally tend to be self-interested for the most part, and people with a speciality in a specific field will obviously take advantage of this specialized knowledge, obviously people are going to take advantage and utilize this knowledge to maximize their profits. The key then is to compare how experts act in their own affairs compared to when they are acting in the interests of other people. .
