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Incentives: The Hidden Forces That Shape Behavior
iNcentives Understand mappings Defaults Give feedback Expect error Structure complex choices
Cass R. Sunstein • Nudge
“contingent contracts” in the negotiation lingo, have three major benefits:6 1. They align the incentives of the parties. In the Frasier negotiation, once a ratings-based incentive is built into the contract, Paramount has a strong financial incentive to produce shows that keep the ratings up, which is exactly what NBC wants too. 2. They allow the
... See moreGuhan Subramanian • Dealmaking: The New Strategy of Negotiauctions (Second Edition)
Good policy uses incentives to channel behavior toward some desired outcome. Bad policy either ignores incentives, or fails to anticipate how rational individuals might change their behavior to avoid being penalized.
Charles Wheelan • Naked Economics: Undressing the Dismal Science (Fully Revised and Updated)
MONEY, AS IT turns out, is very often the most expensive way to motivate people. Social norms are not only cheaper, but often more effective as well