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Rory Sutherland on Alchemy

EconTalk

The Importance of Incentives in Business

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It would be foolish to apply economics as a Newtonian science, like a Newtonian physics. And it's an art that's complicated by the context, culture, ego, will, all kinds of phenomena,. agency, responsibility, pride, reputation. But it's still a good idea to keep incentives in mind. The thing is that humans respond to emotion. Emotion is derived from meaning. And meaning is derived from context as much as it's derived from any kind of objective measure of circumstance. We're so context sensitive in terms of our behavior that the attempt to create what you might call a single line mapping between the environment andbehavior seems to me to be doomed. I wouldn't go

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