Incentives matter, sure. But what should you do when following the incentives means quietly participating in something wrong? Psychologist Adam Mastroianni argues that obeying bad incentives--shading a headline for clicks, keeping the found wallet because no one's watching--is "loser behavior," a surrender of the hardest and most human task: figuring out right from wrong for yourself. In this wide-ranging EconTalk conversation, he and Russ Roberts explore Le Guin's "Omelas," the "big fish" you glimpse that could upend your whole life, and Charles Sumner's near-fatal courage. They wrestle with whether good incentives or good people matter more, why lavish academic salaries may attract exactly the wrong scholars, and the moral lessons of marriage.

What does a failed 19th-century Chinese civil exam and one of the deadliest wars in history have to do with how we hire, educate, and test people today? In this EconTalk conversation, Russ Roberts and education expert Daisy Christodoulou trace a surprising thread from the Taiping Rebellion through Britain's Northcote-Trevelyan reforms, Samuel Pepys's naval exams, and Macaulay's belief that a hard exam on anything--even alchemy or the Cherokee language--reveals the best minds. Christodoulou dismantles that idea with evidence that skills are stubbornly domain-specific: chess masters, surgeons, even Steven Spielberg couldn't simply transfer their brilliance elsewhere. Along the way they wrestle with meritocracy, why bureaucracies fail without feedback, and whether great teachers must resist irony. A rich, wide-ranging discussion that will change how you think about testing and expertise.

He lost his childhood homes, dozens of family members, and most of his hearing in his left ear to Israeli bombs, yet Ahmed Fouad Alkhatib insists that Palestinians must also take responsibility for Gaza's destruction and for peace. Most Gazans, he insists, have turned against Hamas for oppressing them, enriching itself, and bringing catastrophe to Gaza in the aftermath of October 7th. Alkhatib calls for Palestinian introspection and agency while also faulting Israel's settlement expansion and its undermining of moderates. He envisions a demilitarized Gaza run by nonpartisan technocrats, a Palestinian identity defined by aspiration rather than opposition, and direct Israeli-Palestinian dialogue--starting with a "Great Reset" of 100 days without violence on either side. EconTalk host Russ Roberts, more skeptical that Hamas will ever truly disarm, shares Alkhatib's hope that the two peoples might one day live as peaceful neighbors.