Thursday, January 19, 2012

Looking at the Penn State situation through the lens of our class

There is a fascinating piece in the New York Times this morning, about the Penn State Board of Trustees operation in the wake of the scandal.  Of particular interest is how information did not flow as they expected it would and the consequences of that.  We will be talking in class today about lack of incentives to communicate properly.

Sometimes circumstances can be so dire that no incentive could make it so that the person would communicate the truth.  If the person does communicate the truth then it is for reasons of obligation rather than for personal gain.  We'd use the expression - it's the right thing to do.  Normally we don't associate doing the right thing with incentives.

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