The Power of Incentives - How Games Help Us Examine Our World - Extra Credits

Summary

The script explores how incentives shape behavior in both society and video games. It discusses how poorly designed incentives can lead to unintended consequences, using examples from history, such as bounties for cobras and rats that backfired, as well as modern systems like welfare and environmental policies. The script highlights how video games, like Prison Architect and Fate of the World, can teach players to understand complex incentive structures by allowing them to experience their consequences firsthand. Games can offer a unique way to engage with and reflect on real-world issues driven by incentive systems.

Takeaways

• 🌐 Incentives drive much of what happens in modern society, but they are often misaligned or not well-thought-out.
• 🎮 Video games are effective tools for demonstrating how incentives influence human behavior.
• 🐍 Historical examples, like the cobra bounty in colonial India, show how incentives can backfire.
• 🐀 Similar mistakes were made with rat bounties in Vietnam, illustrating the recurring issue with incentive systems.
• 💰 The welfare system is highlighted as an example where incentives did not align with the intended outcomes, leading to unintended consequences.
• 🚗 The 'You Don't Drive Today' law in Mexico City is used to show how incentives can lead to counterproductive outcomes.
• 🏭 Games like Prison Architect allow players to experience the pressures of incentives within a system, prompting reflection on real-world issues.
• 🌳 Fate of the World teaches players about the complex interplay of incentives in climate change and energy production.
• 💭 Games can be more effective at conveying complex systems and their consequences than simple explanations or lectures.
• 🔍 By experiencing the outcomes of incentive systems firsthand in games, players can form their own conclusions and think critically about societal issues.
• 🔄 Experiencing simulations of flawed incentive structures in games can be a starting point for deeper exploration and discussion of real-world problems.

Q & A

How do games serve as a tool to understand incentives in society?

Games are effective tools for demonstrating how incentives operate within complex systems like modern society. By integrating real-world issues into a game's incentive systems, players can experience firsthand the consequences of certain incentives and make decisions within that framework, leading to a deeper understanding of societal dynamics.

What is the historical example of incentive mismanagement mentioned in the script?

The script refers to the British colonial government in India offering a bounty for cobra corpses, which inadvertently led to the establishment of cobra farms. When the bounty was canceled, the cobra farmers released their cobras, resulting in an even larger cobra population.

How did the French in Vietnam similarly mismanage incentives?

The French in Vietnam offered a bounty for rat tails, which led to rat catchers clipping the tails of rats instead of killing them, releasing them back into the wild to breed more, thus exacerbating the rat problem.

What is the issue with the early welfare system as described in the script?

The early welfare system was designed in such a way that if a person worked a full-time minimum wage job, their income plus welfare benefits might not exceed the poverty line by much, disincentivizing work since the additional income from employment did not significantly improve their situation.

How did the 'You Don't Drive Today' law in Mexico City backfire?

The law restricted driving based on license plate numbers, leading people to buy second, cheaper cars to use on restricted days. This resulted in increased pollution as these additional vehicles were often older and less environmentally friendly.

How can games like 'Prison Architect' help in understanding societal issues?

'Prison Architect' allows players to manage a prison and face the pressure of incentives that may lead them to prioritize profit over prisoner welfare. The game does not overtly comment on the prison system but encourages players to think critically about the incentives and their consequences.

What is the educational value of games in exploring complex systems?

Games can serve as educational tools by simulating complex systems and allowing players to interact with them. This interactive experience can lead to a deeper understanding of how different systems and incentives interlock and affect outcomes in the real world.

Why is it important to consider the source of electricity when incentivizing electric cars, as shown in 'Fate of the World'?

In 'Fate of the World', students were surprised to find that incentivizing electric cars did not significantly reduce carbon output because the electricity used to charge those cars often came from coal-fired power plants. This example highlights the importance of considering the entire energy chain when addressing environmental issues.

How can games be used to explore the consequences of unregulated financial sectors?

Games can simulate the dynamics of an unregulated financial sector, allowing players to experience the potential risks and consequences firsthand. By interacting with a game's incentive systems, players can form their own conclusions about the impact of such deregulation on the economy and society.

What is the potential impact of anonymous campaign donations on democracy as explored through games?

Games can model the influence of anonymous campaign donations on democratic processes, showing players how such practices might lead to corruption or the erosion of public trust. By experiencing these dynamics within a game, players can better understand the real-world implications of campaign finance regulations.

Why is experiencing incentives in a game more effective than just being told about them?

Experiencing incentives within a game allows players to directly engage with the consequences of those incentives, leading to a more profound and personal understanding. This hands-on approach is more impactful than passive learning, as it encourages players to think critically and draw their own conclusions.