INCENTIVES.
One of the lessons of this section is that incentives matter. Find an example of bad incentives in the real world and suggest ways to fix the problem. Explain why you think your approach is better. Description REQUIREMENTS Write-ups have a strict word limit of 600 words. You will be penalized for exceeding the word limit. However, please note that very short submissions (typically around 450 words and less) tend to do poorly as well. Please include the word count at the top of the document (e.g., “Word Count: 576”). Please omit the standard introduction and conclusion paragraphs. Instead jump right into the topic. Also, assume that you talk to someone who has done the readings, so no need to define concepts and/or refer to academic literature. Please upload the essays as Word files via iLearn (no PDFs). Do NOT enter any assignment notes. Please use double spacing and 12-point fonts with margins of 1 inch all around. Name the file with your full name and topic number (e.g., John Doe 2.docx). READINGS Ariely, D., Bracha, A., & Meier, S. (2009). Doing good or doing well? Image motivation and monetary incentives in behaving prosocially. American Economic Review, 99, 544-555. Charness, G., & Gneezy, U. (2009). Incentives to exercise. Econometrica, 77, 909-931. Gneezy, U., Meier, S., & Rey-Biel, P. (2011). When and why incentives (don’t) work to modify behavior. Journal of Economic Perspectives, 25, 191-210. Gneezy, U., & Rustichini, A. (2000). A fine is a price. Journal of Legal Studies, 39, 1-18. Gneezy, U., & Rustichini, A. (2000). Pay enough or don’t pay at all. Quarterly Journal of Economics, August, 791-810. Norton, M. I., Mochon, D., & Ariely (2012). The IKEA effect: When labor leads to love. Journal of Consumer Psychology, 22, 453-460