False Incentives – Jakarta Urban Culture Case

For two weeks, I’ve been living in Jakarta. What a messed city… I hate the way that this city works around. For example, people is binging banging going up on the bus way. Or maybe about how many fucked up men who don’t want to give up his seat to a pregnant woman. Damn hell. But… The truth is… This culture is driven by one thing guys. It is called false incentives.

So, for this analysis, I’m going to use one of the most important theory in economic science. This theory said that “people are reacting to incentive”. Hell yeah, we are moved by incentive. Even we make friends to help us defend ourselves. Now, how come rational people do these harms to another people ? Is it worth for ? Of course objectively, it is not worth risking other’s welfare with let’s say three thousand rupiah in monetary value. But, we are rational, not omniscience. And that’s where false incentive can happen. False incentive said that we can evaluate our incentive in a wrong way, because we just simply can’t compute everything. What we think good, maybe objectively not that good, or otherwise. Global warming is a great example for this case. No one wants to dying because of climate problem someday. But, still, people keep throwing exhaust gases to the air. Piling up the earth with those    .

Now, what we can do for this suburban culture in Jakarta ? Well, one thing for sure, we must change the incentive value flow. How is that done ? Well… It is really though. Many things need to be reconsidered, and well it is not an easy job pal… Especially many problematic thing stem from public facility… And to modify the incentives value of public facility ? It is not good man… Haha, about the solution… Still haven’t got any good solution 😛


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