economics

Rationality and Corruption: What Behavioral Economics Knows and What Most of us Miss.

Rationality and Corruption: What Behavioral Economics Knows and What Most of us Miss.

Do you make decisions with your brain or with your heart? Or none of them? Or both of them? Do not rush with an answer; it is not as straightforward as it might seem at a first glance. The cornerstone of economics is an assertion that people’s behavior is been impacted by incentives. People are not good or bad - people are people and they respond to incentives. Therefore, creating appropriate incentives is of the paramount importance. There is often a vast gulf between how people say they behave and how they actually behave.   

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