How Economic Incentives Shape The World

How Economic Incentives Shape The World

In October 2016, the Nobel Prize in Economics went to Oliver Hart and Bengt Holmström for their work in contract theory. This field of economics comes down to the way that people make deals without having all of the information, which happens every time someone signs a contract, gets hired, or buys insurance. Explore some of the real-world issues these prize winners have tackled with the videos below.

Oliver Hart and Bengt Holmström Win 2016 Nobel Prize In Economics

Hear why they won.

The Problem With For-Profit Prisons

Privatizing prison might sound like a good idea, but is it?

The Truth About What Motivates Us

Explore the relationships between reward and punishment

10:48

Key Facts In This Video

  • 1

    One MIT study found that when assigning a task that involved cognitive skill, offering a larger reward led to poorer performance. (1:49)

  • 2

    Science suggests that three factors lead to better performance and satisfaction: autonomy, mastery, and purpose. (5:05)

  • 3

    It's advantageous for companies to connect their profit motive to a more transcendental "purpose motive." (8:44)

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