WEEKLY THOUGHTS

Here is something that caught our eye this week: The Day Care Problem Many assume that the potential for monetary gain or loss drives outcomes.  Compensation schemes are often built with the hope that people will perform better if paid more (i.e., a bonus), and will be deterred from undesirable behavior if tied to a financial penalty (i.e., a fine).  Regarding the latter point, a Journal of Legal Studies article titled A Fine Is A Price written by researchers Uri Gneezy and Aldo Rustichini summarized the findings of the field of deterrence stating that "When negative consequences are imposed on a behavior, they will produce a reduction