Chapter
The Behavioral Economics of Tipping
17:44 - 24:25 (06:41)
People willingly pay for music because they understand the concept of paying for it, and they tend to pay exactly the recommended price because they want to follow what everyone else is doing. On the other hand, people may not altruistically tip servers, but rather they want to avoid social disapproval and maintain being a part of an in-group.
Clips
The incentives and control of pharma companies in producing cancer drugs is different from the control of car seat manufacturers in advancing child safety seating and thus the comparison is not justified.
17:44 - 20:00 (02:16)
Summary
The incentives and control of pharma companies in producing cancer drugs is different from the control of car seat manufacturers in advancing child safety seating and thus the comparison is not justified.
ChapterThe Behavioral Economics of Tipping
Episode127. Can You Be Too Smart for Your Own Good? And Other FREAK-quently Asked Questions
PodcastFreakonomics Radio
The concept of paying for music seems normal to people who grew up having to pay for it, while younger generations may feel entitled to free music on the internet.
20:10 - 22:04 (01:53)
Summary
The concept of paying for music seems normal to people who grew up having to pay for it, while younger generations may feel entitled to free music on the internet. The honesty of individuals in various settings is influenced by certain factors, such as the perception of honor and environment.
ChapterThe Behavioral Economics of Tipping
Episode127. Can You Be Too Smart for Your Own Good? And Other FREAK-quently Asked Questions
PodcastFreakonomics Radio
People often pay for free things when they believe everyone else is doing it, and when they are coerced by the threat of the item not being available to them in the future.
22:04 - 24:25 (02:21)
Summary
People often pay for free things when they believe everyone else is doing it, and when they are coerced by the threat of the item not being available to them in the future. However, these motives are not as altruistic as they may seem and may be influenced by behavioral nudges and leverage.