Thursday, May 27, 2021

How do you align the incentives of sea captains transporting criminals to Australia with those of British public (1800's)?

By paying them for the number who arrive alive--instead for number who board the ship--death rates dropped from 30% to 1%.

This anecdote is taken from the introductory lecture from our friends at George Mason University, who had put their Microeconomics class online:

Introduction to Microeconomics

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