Abstract

There is a very simple reason why people act the way they do and it is given by the following maxim: Maxim #1: Individuals tend to do the things they are rewarded for doing and tend to avoid the things they are punished for doing. Before you discard this simple maxim as being too simple to be of any use, let me explain just a bit. For a given situation, this maxim puts you one step closer and in the right direction to understanding why people behave as they do. Let us try it on a simple example: Why do government employees waste money? If you want to know the answer to this then see if you can determine how government employees are rewarded and punished. You will then have the answer to your questions and you will find that government employees are just acting according to this maxim -- just as we would do if we were in their place.