Thursday, May 9, 2019

Better understanding of the devil's economics - random decision making is not random

Steven Levitt's Devil's Economics examines the interactions between different people and the way they make decisions. He believes that people never make decisions at random, they follow certain rules [may be self-imposed, not necessarily external], and most of the time they try to get things or people related to them or themselves. The rules that humans make decisions may include moral, social or economic incentives or interests.

Balance

For any [dis] aggressive scenario, there are three possible outcomes - if these scenarios are very weak or strong, the desired outcome will not occur. Even if they happen, they may bring some extra malicious baggage to the subject. If we can strike a balance between strong and weak incentives, people will be happy to adopt these decisions.

Everyone has a hard-to-answer right

Another interesting aspect of incentives is cheating - this is defined as the effort to get more benefits by investing less [rather than reasonable] in the work. Let's talk about the schools where teachers are punished or rewarded according to their performance. Teachers deceive them in many ways to ensure they receive rewards. This is the hardest answer for all students who may be wrong. The result is - disproportionately high numbers of students get the answers to the most difficult answers and other easier answers [most]. They may also correct the answers written by the most stupid students who may have made mistakes in the teacher's opinion most of the time.

We need to think like a liar

Steven Levitt said that if we must seize the cheaters, we need to think about their approach. We need to figure out which kind of cheating will bring them the most benefit, even though they do tend to use simpler techniques, even if they bring less reward. The high-risk test was launched in 1996 and the authorities found suspicious changes in the scores scored by some students within a year.

Did the student cheat?

So the question is, can we determine if the teacher is cheating by helping the student? It is safe to say that if the results affect their own financial situation, the teacher will only help their students, otherwise they will not. Steven Levitt said that if students' performance declines after one year, they may cheat. Another possibility is that his performance slipped when the student left his comfort zone.




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