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How To Understand Psychological Incentives - Uri Gneezy - #609

Modern Wisdom

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Uri Gneezy is a behavioural economist, a professor at the University of California and an author who's research focuses on human incentives. Incentives encourage humans to do things. But they're not as straight forward as you might think. They often have unintended and disastrous consequences for our personal lives, businesses and societies. Basically, a bad incentive is worse than no incentive at all.  Expect to learn why paying citizens 10p for a rat tail is a bad idea, how fining parents for taking their kids on holiday results in more kids missing school, why the Toyota Prius won because of its strange design, how reframing discounts can rapidly change behaviour, why Peloton's sales went up when they increased the price, why Coke machines have an outdoors thermometer on them and much more... Sponsors: Get 83% discount & 3 months free from Surfshark VPN at <a href= "https://surfshark.deals/MODERNWISDOM">https://surfshark.deals/MODERNWISDOM</a> (use code MODERNWISDOM) Get $100 discount on the best water filter on earth from AquaTru at <a href="https://bit.ly/drinkwisdom">https://bit.ly/drinkwisdom</a> (discount automatically applied) Get 20% discount on all Keto Brainz products at <a href="https://ketobrainz.com/modernwisdom">https://ketobrainz.com/modernwisdom</a> (use code: MW20) and follow them on Instagram at <a href= "https://www.instagram.com/ketobrainz/">https://www.instagram.com/ketobrainz/</a> Extra Stuff: Buy Mixed Signals - <a href= "https://amzn.to/40pQ4Tj">https://amzn.to/40pQ4Tj</a>  <a href="https://chriswillx.com/books/" target="_blank" rel= "noopener">Get my free Reading List of 100 books to read before you die → https://chriswillx.com/books/</a> To support me on Patreon (thank you): <a href= "https://www.patreon.com/modernwisdom">https://www.patreon.com/modernwisdom</a> - Get in touch. Instagram: <a href= "https://www.instagram.com/chriswillx">https://www.instagram.com/chriswillx</a> Twitter: <a href= "https://www.twitter.com/chriswillx">https://www.twitter.com/chriswillx</a> YouTube: <a href= "https://www.youtube.com/modernwisdompodcast">https://www.youtube.com/modernwisdompodcast</a> Email: <a href= "https://chriswillx.com/contact/">https://chriswillx.com/contact/</a>

Uri Gneezy is a behavioural economist, a professor at the University of California and an author who's research focuses on human incentives.

Incentives encourage humans to do things. But they're not as straight forward as you might think. They often have unintended and disastrous consequences for our personal lives, businesses and societies. Basically, a bad incentive is worse than no incentive at all. 

Expect to learn why paying citizens 10p for a rat tail is a bad idea, how fining parents for taking their kids on holiday results in more kids missing school, why the Toyota Prius won because of its strange design, how reframing discounts can rapidly change behaviour, why Peloton's sales went up when they increased the price, why Coke machines have an outdoors thermometer on them and much more...

Sponsors:

Get 83% discount & 3 months free from Surfshark VPN at https://surfshark.deals/MODERNWISDOM (use code MODERNWISDOM)

Get $100 discount on the best water filter on earth from AquaTru at https://bit.ly/drinkwisdom (discount automatically applied)

Get 20% discount on all Keto Brainz products at https://ketobrainz.com/modernwisdom (use code: MW20) and follow them on Instagram at https://www.instagram.com/ketobrainz/

Timestamps:

(00:00) Intro
(00:25) Explaining Incentives
(03:55) Social Dynamics of Signalling
(12:15) The Problem with Mixed Signals
(17:34) Uber’s Driver Incentive Program
(21:02) The Right Way to Encourage Innovation & Punish Failure
(28:06) How Peloton Sold More With a Higher Price
(32:50) The Mixed Signal of Long-Term Goals & Short-Term Results
(38:31) How Incentives Are Helping Prevent Female Genital Mutilation
(46:24) Why Fines Are So Bad at Incentivising Behaviour
(52:41) How an LA Car Company Used Incentives to Drive Sales
(1:02:18) Using Incentives to Find Problems
(1:08:14) What Most People Get Wrong About Negotiation
(1:13:30) Where to Find Uri

Extra Stuff:

Buy Mixed Signals - https://amzn.to/40pQ4Tj 

Get my free Reading List of 100 books to read before you die → https://chriswillx.com/books/

To support me on Patreon (thank you): https://www.patreon.com/modernwisdom

Episodes You Might Enjoy:

This Is How To Master Your Life - David Goggins - #577: ⁠⁠⁠lnkfi.re/SN-Goggins⁠⁠⁠

How To Destroy Your Negative Beliefs - Dr Jordan Peterson - #712: ⁠⁠⁠lnkfi.re/SN-Peterson⁠⁠⁠

The Secret Tools To Hack Your Brain - Dr Andrew Huberman - #700: ⁠⁠⁠lnkfi.re/SN-Huberman⁠⁠

Get in touch.

Instagram: https://www.instagram.com/chriswillx

Twitter: https://www.twitter.com/chriswillx

YouTube: https://www.youtube.com/modernwisdompodcast

Email: https://chriswillx.com/contact/ 
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