Freakonomics
Microeconomics
Freakonomics
Real Estate Incentives apply to any business application you can think of because people respond to incentives. Incentives are what run humans and may times we act on incentives. An example would be if you own a bakery and everyday you make three-hundred cupcakes and you want increase production by another hundred you offer an incentive being that for every twenty extra cupcakes made there will be a five-hundred peso bonus. Using an incentive will not only increase production but will increase profits because you have more cupcakes to sell. Another example would be a store at the mall that pays on commission the employees are more likely to sell more with the incentives in mind. Like Steven Levitt says in the movie “If there is one element there in almost everything we do is the idea that incentives matter, and if you figure out what peoples incentives are you have a good chance of guess how they are going to behave.”
Names and Parenting The movie talks about how parents name their kids after successful people so that they too will be successful. This is used as an incentive because these parents think that giving their child a specific name will make them successful when in fact it is the way that they are brought up that determines if they will be successful or not. Principle 2: The cost of Something Is What You Give Up to Get It, when you have a child you give up a certain life of freedom that you once had to get up and go whenever you please. With a child you sacrifice much more because now you have to take care of someone else in the end what you give up is insignificant to what you gain, just like starting a new business you have to sacrifice certain things in order to make your business successful.
Freakonomics
Real Estate Incentives apply to any business application you can think of because people respond to incentives. Incentives are what run humans and may times we act on incentives. An example would be if you own a bakery and everyday you make three-hundred cupcakes and you want increase production by another hundred you offer an incentive being that for every twenty extra cupcakes made there will be a five-hundred peso bonus. Using an incentive will not only increase production but will increase profits because you have more cupcakes to sell. Another example would be a store at the mall that pays on commission the employees are more likely to sell more with the incentives in mind. Like Steven Levitt says in the movie “If there is one element there in almost everything we do is the idea that incentives matter, and if you figure out what peoples incentives are you have a good chance of guess how they are going to behave.”
Names and Parenting The movie talks about how parents name their kids after successful people so that they too will be successful. This is used as an incentive because these parents think that giving their child a specific name will make them successful when in fact it is the way that they are brought up that determines if they will be successful or not. Principle 2: The cost of Something Is What You Give Up to Get It, when you have a child you give up a certain life of freedom that you once had to get up and go whenever you please. With a child you sacrifice much more because now you have to take care of someone else in the end what you give up is insignificant to what you gain, just like starting a new business you have to sacrifice certain things in order to make your business successful.