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Incentives


Aid for AIDS (8/30/2001)

Benefit/cost analysis applied to the epidemiology of AIDS leads to surprising behavioral implications and policy recommendations.

Keywords: AIDS, cost of infection, cost of protection, diseases, epidemiologists, hazard rate, HIV, prevalence, public health expenditure, transmission

Busy secretary - The principal-agent problem (11/2/2011)

The principal-agent conflict is endemic in employer-employee and supervisor-supervisee relationships.

Keywords: principal-agent problem

Dead Men Flying (3/7/2007)

Funeral directors might be more concerned about getting the most perks offered by airline loyalty programs than the lowest fares for shipping dead bodies.

Keywords: air miles, cargo, corpse, dead bodies, Florida, frequent dier program, funeral director, inelastic demand, Jet Blue, JetBlue, loyalty program, perks, shipment

Front Loading (5/12/2010)

Cash for clunkers and home-buyer tax credit provided huge subsidies for each incremental sale but failed to sustain the car and housing markets.

Keywords: cash for clunkers, channel stuffing, Economic stimulus, expenditure multiplier, front loading, home-buyer tax credit, incentive, incremental sale, pump priming, subprime loan, subsidies

Green Tax (8/30/2001)

Taxing nonrenewable resources instead of labor income would create more jobs and encourage conservation while reducing pollution.

Keywords: carbon tax, climate change, eco-tax, energy-efficient technologies, environment, global warming, green taxes, greenhouse gas emissions, income taxes, labor income, natural resources, negative externality, pollution, tax revenues, tax shift

Image Polishing (8/20/2009)

Image polishing is a powerful incentive for charitable donations.

Keywords: blood, charity, donations, image, name recognition, neuroscience, tax deduction

Metered Consumption (3/7/2007)

Resource conservation depends on who pays and the time horizon of costs vs benefits.

Keywords: energy conservation metering, energy efficiency, external cost, fixed cost, insulation, internal cost, landlord, life cycle cost, long-term benefit, marginal cost, private cost, property right, short-term cost, social cost, tenants, water

Scrapped Art (3/7/2007)

High prices of copper have led to theft of bronze sculptures for material recycling.

Keywords: Aztec gold, copper, material recycling, oil, plastic crates, plastic resin, property right, scrap metal, theft

Supply-chain Births (6/22/2006)

Caesarean sections, which are preferred for their predictability, are more prevalent when reimbursement policy favors their practice even when they are not medically necessary.

Keywords: abdominal delivery, Brazil, C-sections, Caesarean sections, funding, health care, incentives, lifestyle choice, medical necessity, reimbursement, vaginal delivery

Talent Raid (10/19/2000)

The booming high-tech economy and the speculative stock market have led to massive migration of skilled workers from old-line firms to Internet startups in search of overnight wealth promised by generous stock options.

Keywords: dot-coms, gold rush, MBA, migration, not-coms, raid, start-ups, startups, stock options, talent, turnover

The Miles Rush (7/27/2000)

Frequent flier miles are as good as money because they are redeemable for many goods and services and can be earned in many ways other than flying.

Keywords: airlines, FBM, FFM, frequent buyers, frequent flier miles, loyalty, medium of exchange, money

To Each According to His Work (3/7/2007)

Piecework pay could raise labor productivity, pay, and company earnings when output and quality are easily measurable.

Keywords: hourly wage, incentive, performance, piece-rate, piecework, productivity, quality control, Safelite Glass, safety net wage

Windfall Profit (9/7/2005)

Unexpected market gain resulting from uncontrolled circumstances might serve as incentives to correctly allocate scarce resources.

Keywords: aluminum, California, contract, electricity, Kaiser Aluminum, opportunity cost, property rights, water, windfall profit

Yes, Boss. (1/16/2006)

The prevalence of yes persons is due to the difficulty of objectively assessing the contribution of white-collar work and the bosses’ human desire to hear confirming information.

Keywords: central planning, Chairman Mao, China, Darwin, feedback, job security, market exit, natural selection, tenure, yes men