Well I was pondering over the trolley issue I kind of blogged about yesterday and came to the realization that such situations are very common in our daily lives.
Basically, we humans are much like flowing water and mindless sheeps when we make our daily decisions in life. As a result, we tend to make choices based on minimising the marginal costs or maximising the marginal benefits.
To shape human’s behaviour, we try to introduce new incentives/disincentives. This has the effect of changing the costs structure so that it becomes cheaper for humans to adopt the new behaviour.
MC refers to Marginal Costs and as it is cheaper for more people to perform the undesired behaviour, we need to introduce an incentive, i.e. getting your dollar coin back if you return the cart to its rightful location, to create a new incenticized system.
