Understanding Human Behavior through Incentives

Human behavior is often driven by the goals individuals are optimizing for, which are frequently related to incentives. For instance, the pursuit of money motivates people to engage in work and education, demonstrating how economic incentives influence decision-making. In extreme cases, such as specific laws in China, people may act in a way that seems morally questionable due to financial motivations, like hitting a pedestrian and checking for death to avoid lifelong medical costs. Recognizing that incentives dictate behavior can help clarify actions that may initially seem contradictory or hypocritical.