Economics 1021A/B Lecture Notes - Lecture 10: Tim Hortons, State Implementation Plan, Lottery

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: Margaret Loudermilk

Document Summary

Resource management dilemma- there"s a temptation to take as much as possible to maximize short-term benefits take too much dilemma". Less effective if people believe they wont get caught/punishments won"t be given: increase rewards for cooperative behaviour: Toll-free roads (or separate lanes) for car pools. Tax rebates for those who save electricity: increase perceptions of trust : Observing others who are cooperating (too much trust is a problem though>) If most people are cooperating, we might be tempted to take a free ride and not cooperate. (they are recycling next door, so i don"t have to this week) Communication must focus on cooperation (not blaming each other for competing) In small groups not a problem, people know their choices will make a difference. If everyone thinks this way, their total impact on environment will be noticeable. 10 days= 50 page essay: describe the problem as one that requires cooperation. Called it the wall street game 75% competed.