Young Economics.

Incentives

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I recently became the last Facebook hold-out among my circles of friends.  I am really feeling the pressure to become an active user now.  (If Tom Schelling has taught us anything, it’s that we’ll inevitably converge to the extreme equilibrium in which everyone signs up.)  Social pressures provide strong incentives.

I do have an account, which I have very, very rarely used.  Today, I decided to log in to see how it felt.  I didn’t feel much desire to send any friend invitations or write on any walls, but I did notice a delightful pair of ads on the sidebar that beautifully illustrated different forms of incentives — and perhaps explained why the Conservative Party is so much more successful than the NDP:

Get involved?  Eh, I'll take the money...

Get involved? Eh, I'll take the money...

So there you have it.  Five minutes of thinking about Facebook provided two examples of incentives at work.  Maybe I have been missing out.

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Written by Alex

March 27, 2009 at 6:57 pm

Posted in Uncategorized

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