Grand Unified Theory (GUT) = Signaling theory + Incentive theory

My previous post on Signaling theory My previous post on Incentive theory The two posts above over the past couple of weeks were essentially intended to explain the Grand Unified Theory (hereby referred to as GUT). So, what is GUT? Signals and Incentives are intertwined with each other. I’d say, if incentives are to be [...]

Incentive Theory – A Primer

Incentive theory is primarily a psychological term, explaining the relation between motivation and behavior of the individual, as shaped by profitable intent. Let me explain. The heart of economics deals with incentives. Incentives shape the behavior of an individual. These incentives need not necessarily be monetary. They can be non-material forms like love and respect [...]