Logic of Life

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by Tim Harford, 2009

  • Slippery slope: The most effective defense against addiction is to draw an arbitrary but symbolically significant line in the sand and stay behind it. We are driven by an internal "dopamine system" that seeks instant gratification. A small taste of some pleasure creates a craving for more, creating a cycle of addiction. The rational mind is very feeble against this cycle, so our only protection is to put up a fence and avoid temptation.
  • Workers who are being watched by more dutiful workers will themselves act more dutifully.
  • High-ranking managers aren't paid based on their performance. They're paid enough to motivate the layer of employees working under them.
  • Split the check: Restaurants can overcharge a large group because no one person gets gouged enough to complain. The same is true of shareholders being gouged by corporate officers and citizens being charged by powerful lobbies.