Phil decides to steal (what he believes to be) Luke’s bike to teach him a lesson about leaving his property lying around town unsupervised. In the process of helping a neighbor who locked herself out of her house, Phil loses the bike because he didn’t lock it before walking away. Phil returns to the bike shop in the hopes of explaining his situation and getting another bike for Luke, but the employee won’t give him a new bike because Phil didn’t buy the insurance before. Phil believed that insurance was for “suckers” but risk averse people may prefer the added cost in exchange for peace of mind.
See more: insurance, risk aversion, unintended consequences
Economists often suggests that competition improves efficiency in markets and Jay seems to agree. He fosters competition within his family to help them achieve their goals. At this moment in the episode, he appears that his motivation worked out and everyone has been successful, but later in the episode, we find out that there were some unintended consequences of his actions.
See more: competition, extrinsic rewards, incentives, intrinsic rewards, labor, motivation, perverse incentives, unintended consequences
Economists often suggests that competition improves efficiency in markets and Jay seems to agree. He fosters competition within his family to help them achieve their goals. In an earlier scene, we learn that Jay withholds praise to encourage his family, but this year they have all seemingly surpassed his expectations. But are they really achieving those goals? The truth comes out in this clip. It turns out that they’re a family of cheaters and not a family of winners. Jay’s decision to incentivize them with praise has some stark unintended consequences.
See more: cheating, competition, ethics, incentives, moral hazard, motivation, self interest, unintended consequences