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  • Essay / Moral Incentives Essay - 1299

    Emotions have a huge impact on our daily lives. They are able to prevent us from making intelligent decisions and from making stupid decisions. In an NPR article titled “How Peer Pressure Can Encourage Tax Defenders to Pay,” journalist Shankar Vedantam reports: “Emotion is the enemy of rational argument. And as emotions evolve, one of them – fear – is more powerful than the others… This leads many parents to expend much of their parenting energy or simply become afraid” (Levitt and Dubner 197). Since emotions can be very blinding and misleading, they can affect the way people make decisions. Emotions can easily be used as an advantage to sell something, but they can also be used for good. For parents, fear pushes them to make irrational decisions. It can also cause parents to try to do what they think is best for their child when that is not really the case. Another example would be parents who arrive late to pick up their child from daycare. Parents who drop their child off at daycare and arrive late feel a little guilty because they aren't giving anything in return. In a Freakonomics blog “What makes people do what they do? » John List and Uri Gneezy, say the authors: “All of this made us wonder: What would happen if these daycares stopped relying on generosity and started relying on a financial incentive – like a fine – to discourage parents from arriving late? Few would have predicted what we discovered: the introduction of a