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We create a system that forces people to bear more of the costs of their actions.
In contrast to stochastic sampling methods, humans utilise past experience to evaluate the costs of their actions in the future and to guide their search.
Research suggests that legitimate users of a system often may be the likely cause of impaired security when they overlook rules, because they underestimate or fail to understand the costs of their actions (Besnard and Arief 2004).
That could help reduce the "moral hazard" that exists because the banks that failed did not suffer the full costs of their actions.
This opens up a novel set of disease management instruments aimed at confronting individuals with the external costs of their actions or compensating them for the external benefits their actions provide.
Republicans and Democrats who are resisting the breakup of too-big-to-fail banks or the full enactment of the Volcker rule should also be required to estimate the potential costs of their actions.
That tells us that the people who govern us can be extraordinarily insensitive to the human costs of their actions.
Thanks to Ludwig my first paper got accepted! The editor wrote me that my manuscript was well-written
Listya Utami K.
PhD Student in Biology, Bandung Institute of Technology, Indonesia