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232i2-103
The basic economic argument for congestion charges is well established. In a nutshell, it says that since travel times increase with traffic volumes, an additional car on the road slows down all other cars, increasing time costs for all the occupants of all the cars. The decision to travel made by the occupants of an additional car is based on their own travel costs (their private or internal costs). They ignore any increase in travel costs for all other car users (the external costs). This is inefficient when private costs are below the full social cost of the decision to travel. When decisions are made on the basis of “underestimates” of costs, too much of a good (in this case, travel) will be consumed. A congestion charge is intended to confront users with costs imposed on other users, so as to align private costs with social costs. The charge will suppress part of demand, reduce congestion and increase surplus.

232i2-104
Indeed, in order to feel good about the choices we make, self -justification is necessary. Yet mindless self-justification, or justifying things that we know were mistakes for the sake of sticking to our story, can draw us deeper into disaster. It blocks our ability to even see our errors, let alone correct them. It distorts reality, keeping us from getting all the information we need and assessing issues clearly. It deepens and widens rifts between lovers, friends, and nations. It keeps us from letting go of unhealthy habits. It permits the guilty to avoid taking responsibility for their deeds, as when an employee is caught embezzling and he justifies it by saying he is very badly underpaid. It’s only through constant self-policing that we can make sure our self-justification is mindful and not a denial of reality.

2112-29
Anchoring bias describes the cognitive error you make when you tend to give more weight to information arriving early in a situation compared to information arriving later ― regardless of the relative quality or relevance of that initial information. Whatever data is presented to you first when you start to look at a situation can form an "anchor" and it becomes significantly more challenging to alter your mental course away from this anchor than it logically should be. A classic example of anchoring bias in emergency medicine is "triage bias," where whatever the first impression you develop, or are given, about a patient tends to influence all subsequent providers seeing that patient. For example, imagine two patients presenting for emergency care with aching jaw pain that occasionally extends down to their chest. Differences in how the intake providers label the chart - "jaw pain" vs. "chest pain," for example - create anchors that might result in significant differences in how the patients are treated.

2112-33
When it comes to climates in the interior areas of continents, mountains play a huge role in stopping the flow of moisture. A great example of this can be seen along the West Coast of the United States. Air moving from the Pacific Ocean toward the land usually has a great deal of moisture in it. When this humid air moves across the land, it encounters the Coast Range Mountains. As the air moves up and over the mountains, it begins to cool, which causes precipitation on the windward side of the mountains. Once the air moves down the opposite side of the mountains (called the leeward side) it has lost a great deal of moisture. The air continues to move and then hits the even higher Sierra Nevada mountain range. This second uplift causes most of the remaining moisture to fall out of the air, so by the time it reaches the leeward side of the Sierras, the air is extremely dry. The result is that much of the state of Nevada is a desert.

2112-34
One vivid example of how a market mindset can transform and undermine an institution is given by Dan Ariely in his book Predictably Irrational. He tells the story of a day care center in Israel that decided to fine parents who arrived late to pick up their children, in the hope that this would discourage them from doing so. In fact, the exact opposite happened. Before the imposition of fines, parents felt guilty about arriving late, and guilt was effective in ensuring that only a few did so. Once a fine was introduced, it seems that in the minds of the parents the entire scenario was changed from a social contract to a market one. Essentially, they were paying for the center to look after their children after hours. Some parents thought it worth the price, and the rate of late arrivals increased. Significantly, once the center abandoned the fines and went back to the previous arrangement, late arrivals remained at the high level they had reached during the period of the fines.

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