“People don’t always respond to incentives in the ways you might predict. What distinguishes good economic thinking from bad is recognition of the subtle, creative, and often unforeseen ways that people respond to incentives.” Economist Glen Whitman
GUEST EDITORIAL
Ask any economist, and heβs tell you that the business world works best where there are proper incentives in place to guarantee the best performance. And bad incentives produce whatβs called βperverse consequencesβ. And thereβs a secret perverse consequence to contingency assignments thatβs being kept hidden.
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