Luis Garicano: Incentives can explain everything

Luis Garicano, a Professor of Economics at LSE, thinks that the effect of the global market on incentives can go some way to explaining the current financial crisis. Applying his model of incentives to the world of football, he demonstrates that it is only when we consider rewards that we can understand the way the economics of such diverse situations operate.

Big Ideas is a series of films featuring leading academics from the London School of Economics and Political Science presenting novel and often bold solutions to some of the problems facing British society today. The series has been made specially for Independent.co.uk by Ember Regis in conjunction with LSE .