Principles of Microeconomics / Unit 1 MIC 0014 short lesson, about 20 seconds
Incentives
Captions available
The idea
An incentive changes the cost or benefit of a choice, and people respond. Ownership is the strongest: an owner gains from using a resource well and loses by wasting it.
In practice
Drivers paying for parking by the hour leave sooner than those parking free.
Where people slip
Incentives work at the margin: a small price change moves the last unit bought, not the whole habit.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
Unlocks
- Nothing yet depends on this.
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