Imagine that you are the owner of a day-care center and that parentsconsistently pick their children up late. Your clearly stated policy isthat children are supposed to be picked up by 5:30 pm. This makespick-up time uncomfortable for all involved. What should you do? A couple of economists who heard of this dilemma suggested a simplesolution: fine the tardy parents. They then decided to test thissolution in a study of ten day-care centers in Haifa, Israel. For fourweeks they tracked the number of late pick-ups and then in the fifthweek a $10 fine per child per incident of lateness was enacted. After the fine was enacted, the number of late pickups promptly went up. What isthe incentive in this example? Do you think this means that incentivesdon't matter? Are there incentives other than economic incentives?