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People respond to incentives from "summary" of Freakonomics by Steven D. Levitt
The idea that people respond to incentives is a fundamental concept in economics. It is the notion that individuals make decisions based on the incentives they face, whether those incentives are monetary, social, or psychological. Incentives can take many forms, from financial rewards to social approval or even personal satisfaction. One example of how people respond to incentives is in the realm of crime. Levitt discusses how crime rates can be influenced by changes in incentives. For instance, if the punishment for a particular crime is increased, individuals may be less likely to engage in that criminal behavior due to the higher costs associated with getting caught. On the other hand, if the potential rewards for committing a crime are high, individuals may be more inclined to take that risk. Another example Levitt gives is in the field of...
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