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• W286242768 abstract "Discover Your Inner Economist: Use Incentives to Fall in Love, Survive Your Next Meeting, and Motivate Your Dentist. Tyler Cowen Dutton, New York, 2007 Tyler Cowen's book Discover Your Inner Economist is a study of how individuals can make utility maximizing decisions, while taking into account the different social contexts they may find themselves in. The book explores the concepts of incentives, signaling and scarcity in order to provide instruction on getting the most out of everyday life. Cowen emphasizes that the main concept in economics is not money, but rather incentives. Money can be a tool used to obtain things, but not everything can be bought with money. Incentives are always at work as we go about obtaining things. Money is one type of incentive, as is praise or approval or a smile. He also points out that not every transaction is as simple and straightforward as buying a banana. If a consumer wants a banana, he or she will go to the market and buy it. There aren't such simple markets for everything. As a result, we must often try to motivate others and ourselves to get what we want. Discover Your Inner Economist provides the reader with insight on how to overcome the problem of motivation and as well as how to make more effective choices. In this respect, Cowen has written what might be regarded as an economics self-help book. To be able to understand the choices people make, and to make more effective decisions ourselves, we must understand how human beliefs and opinions change based on social context. We must consider questions like: does dressing casually for a job interview signal a weak and careless candidate or does it signal strength? The second and third chapters of the book explore ways to control the world (by which Cowen means manipulate the circumstances around oneself), and they also instruct readers on knowing when to stop. In trying to cure parents of lateness when picking up their children from daycare, for example, one option would be to charge them late fees. Cowen points out, however, that in this context charging parents for being late will likely have unintended negative consequences. Parents will begin to assume that it is fine to be late because they are paying. This may cause them to be late more often, or to take advantage of extended and probably less expensive daycare services. If the goal is to get parents to pick up their children on time, late fees are probably a bad incentive. In attempting to motivate one's dentist, an option might be to give the dentist a bonus when you think he or she has done an exceptional job during your visit. But Cowen asserts that this could yield a negative unintended consequence similar to the daycare scenario. A bonus will probably give the dentist an incentive to put the patient through as little pain as possible, telling them to ignore something like a fragmented tooth, in order to give the patient short term, rather than long term, satisfaction. Instead, Cowen's solution to motivating his dentist is to pretend he has no fear and tell his dentist he did a good job. This, he says, contributes to his self image as a good dentist, causing him to perform better. Chapter 4 is titled Possess All the Great Art Ever Made, and it focuses on how to become a cultural billionaire (or, how to maximize your utility while exposing yourself to a maximum amount of culture). He instructs the reader on how to tour museums, choose and read books, watch movies, and eat out at restaurants. An important thing to keep in mind is the scarcity of time and attention. When touring a museum, we can become bored quickly. An effective technique that Cowen provides is bringing the me factor into the experience by making it all about oneself. In each room of the museum, he advises individuals to ask themselves which piece of art they would choose to take home. This causes the individual to have a critical, interactive experience with the art, as well as to create a kind of personal attachment to specific pieces. …" @default.
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• W286242768 title "Discover Your Inner Economist: Use Incentives to Fall in Love, Survive Your Next Meeting, and Motivate Your Dentist" @default.
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