Not enough cash and prizes.

Incentives matter.


The Telegraph has an article up about the impact of reduced cash incentives for women to divorce:

Fewer wives are being awarded income for life and they are increasingly having their divorce settlement limited to a few years.

This is making some of them back off from going through with a split, law firms say.

This should surprise no one.  Incentives matter.  Raise the cash reward paid to women who blow up their families, and more women will choose to blow up their families.  Lower the cash reward, and more children will grow up with daddy in the home (but mommy is restricted from having sex with other men).

There is a less obvious but socially even more powerful impact of these cash incentives.  Cash incentives aren’t just designed to blow up some families, they are designed to destabilize all families.  As Wolfers and Stevenson explain in Bargaining in the…

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