Ep28 Incentives and Externalities
All Else Equal: Making Better Decisions
00:00
The Evolution of Mortgage Contracts
We're all basically agreeing to these very long documents, licensing agreements. None of us are reading them. You would think eventually somebody would sue on the basis that even the company did not expect the people to read it. I've become more complicated over my lifetime. Another example is how the government repairs roads. The government always elects to work on lots of roads at the same time. Why? Because they don't bear the costs of the closed road when they're working on it. They get it still done in a year. But as far as the inconvenience is concerned, it's greatly different.
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