Saved by sari and
Incentives: The Hidden Forces That Shape Behavior
One of my favorite cases about the power of incentives is the Federal Express case. The heart and soul of the integrity of the system is that all the packages have to be shifted rapidly in one central location each night. And the system has no integrity if the whole shift can't be done fast. And Federal Express had one hell of a time getting the th... See more
Charlie Munger • “The Psychology of Human Misjudgment”
Skinner’s three key insights — immediate rewards work better than delayed, unpredictable rewards work better than fixed, and conditioned rewards work better than primary — were found to also apply to humans, and in the 20th Century would be used by businesses to shape consumer behavior. From Frequent Flyer loyalty points to mystery toys in McDonald... See more
Gurwinder • Why Everything Is Becoming a Game
Incentives are the cornerstone of modern life. And understanding them—or, often, deciphering them—is the key to understanding a problem, and how it might be solved.
Steven D. Levitt • Think Like a Freak
There is also a possible 11th factor, which is when the reward needs to be paid. Big upfront commitments with the 'hope' of later rewards and recognition can be very weak mechanisms when work is plentiful and good contributors are scarce. Understanding if you can pay immediately, in tranches, or at completion might be a relevant and important facto... See more