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Showing posts from March, 2022

The disorder of the world of smart guys

I was teaching about externalities, discussing externalities arising out of traffic violations. During discussion, we discussed how it is possible to reward the ‘good’ driving along with fines for violations. I did not want to stop at discussing using material incentives to address the external effects of human behaviour. I wanted to show that societies often develop behavioural norms which essentially address externalities – effects of one’s behaviour on others. These behavioural norms are or were seen as a code to be followed for its own sake and not for any possible benefit. (For example, नेकी कर और कुवे मे डाल) The subtler point I wanted to highlight was use of material rewards can weaken the power of one’s own moral code on one’s own behaviour. I asked students following. Suppose you are driving a vehicle at 2 AM. You are at a point from where your destination is on 100 meters if you drive on the wrong side of the road. But if you go as per the driving rules, then you must driv...