This is a classic, textbook example of incentives. While the government has a clear role in our society - define and enforce property rights, a transparent court system, and national defense.
Beyond that it is clearly worth debating the efficacy of the government beyond these limited functions. So, this article is a nice example of the role that institutions and incentives play.
Every spring, private security officers at San Francisco International Airport compete in a workplace "March Madness"-style tournament for cash prizes, some as high as $1,500.
The games: finding illegal items and explosives in carry-on bags; successfully picking locks on difficult-to-open luggage; and spotting a would-be terrorist (in this case Covenant Aviation Security's president, Gerald L. Berry) on security videos.
"The bonuses are pretty handsome," Berry said. "We have to be good - equal or better than the feds. So we work at it, and we incentivize."
Sunday, January 2, 2011
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