Episode
#609 - Uri Gneezy - How To Understand Psychological Incentives
1:18:35
Published: Sat Apr 01 2023
Description
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/ 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 - 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/
Chapters
Learn about the tactics used by online stores to make you spend more money, why using a VPN like Surfshark can give you access to more Netflix content, how fines for taking kids on holiday can lead to them missing school, and more.
00:00 - 03:58 (03:58)
Summary
Learn about the tactics used by online stores to make you spend more money, why using a VPN like Surfshark can give you access to more Netflix content, how fines for taking kids on holiday can lead to them missing school, and more.
Episode#609 - Uri Gneezy - How To Understand Psychological Incentives
PodcastModern Wisdom
The speaker discusses the different perspectives of why people go to work, either to earn money or for fulfillment, and how to find a balance between the two to improve overall job satisfaction.
03:58 - 08:08 (04:09)
Summary
The speaker discusses the different perspectives of why people go to work, either to earn money or for fulfillment, and how to find a balance between the two to improve overall job satisfaction.
Episode#609 - Uri Gneezy - How To Understand Psychological Incentives
PodcastModern Wisdom
The desire for positive feedback and approval from others can heavily influence a person's decision to engage in "good" or "bad" behavior, even when morality is not a factor.
08:08 - 11:21 (03:12)
Summary
The desire for positive feedback and approval from others can heavily influence a person's decision to engage in "good" or "bad" behavior, even when morality is not a factor.
Episode#609 - Uri Gneezy - How To Understand Psychological Incentives
PodcastModern Wisdom
A kid wanted to buy a Harrier jump jet from the Pepsi Billion Dollar Giveaway promotion but realized it’s not included in the prizes.
11:21 - 16:14 (04:53)
Summary
A kid wanted to buy a Harrier jump jet from the Pepsi Billion Dollar Giveaway promotion but realized it’s not included in the prizes. He then recruited his father’s rich friend to help him buy Pepsi cans in bulk hoping to find a winning tab under the bottle cap that would enable him to get the plane. The story highlights how people spend a lot of time and money searching for the perfect gift that sends the right signal, especially during the holidays and special occasions.
Episode#609 - Uri Gneezy - How To Understand Psychological Incentives
PodcastModern Wisdom
In this episode, the host discusses how incentives can have a significant impact on people's decision-making processes, even if they are not aware of it.
16:14 - 24:02 (07:47)
Summary
In this episode, the host discusses how incentives can have a significant impact on people's decision-making processes, even if they are not aware of it. Examples include physician compensation and Uber's policy for drivers to continue working towards a bonus, even if they don't reach it.
Episode#609 - Uri Gneezy - How To Understand Psychological Incentives
PodcastModern Wisdom
Encouraging innovation involves allowing room for failure and not punishing it.
24:02 - 28:16 (04:13)
Summary
Encouraging innovation involves allowing room for failure and not punishing it. Offering incentives for creativity and giving the necessary tools to succeed leads to achieving successful innovations.
Episode#609 - Uri Gneezy - How To Understand Psychological Incentives
PodcastModern Wisdom
This podcast discusses the use of price discrimination based on temperature in vending machines and the implementation of working from home as a reward instead of punishment in businesses.
28:16 - 32:21 (04:05)
Summary
This podcast discusses the use of price discrimination based on temperature in vending machines and the implementation of working from home as a reward instead of punishment in businesses.
Episode#609 - Uri Gneezy - How To Understand Psychological Incentives
PodcastModern Wisdom
Customers who choose to buy expensive items, whether it's shoes or wine, may do so for the satisfaction of having the absolute best or for the signaling effect, while businesses benefit from the higher profit margin of these products.
32:21 - 36:28 (04:07)
Summary
Customers who choose to buy expensive items, whether it's shoes or wine, may do so for the satisfaction of having the absolute best or for the signaling effect, while businesses benefit from the higher profit margin of these products.
Episode#609 - Uri Gneezy - How To Understand Psychological Incentives
PodcastModern Wisdom
The mismatch between the pressure leaders face to perform in the short-term and the need for long-term decision-making can result in suboptimal outcomes for organizations.
36:28 - 40:39 (04:10)
Summary
The mismatch between the pressure leaders face to perform in the short-term and the need for long-term decision-making can result in suboptimal outcomes for organizations. This is often due to a misaligned system of incentives that rewards immediate gains while undervaluing future benefits.
Episode#609 - Uri Gneezy - How To Understand Psychological Incentives
PodcastModern Wisdom
The practice of female genital mutilation (FGM) is still present in many parts of Africa.
40:39 - 50:16 (09:37)
Summary
The practice of female genital mutilation (FGM) is still present in many parts of Africa. FGM is often justified in order to increase the value of a girl for her family and to increase her chances of finding a good husband.
Episode#609 - Uri Gneezy - How To Understand Psychological Incentives
PodcastModern Wisdom
The experiment found that many people are late when given the incentive of a fine.
50:16 - 54:03 (03:46)
Summary
The experiment found that many people are late when given the incentive of a fine. The fear of losing money is not always enough to motivate people to be punctual.
Episode#609 - Uri Gneezy - How To Understand Psychological Incentives
PodcastModern Wisdom
The hosts discuss the effectiveness of online advertising and how websites benefit from directing users to make purchases through their links.
54:03 - 58:07 (04:04)
Summary
The hosts discuss the effectiveness of online advertising and how websites benefit from directing users to make purchases through their links.
Episode#609 - Uri Gneezy - How To Understand Psychological Incentives
PodcastModern Wisdom
When designing incentives, it's important to consider the cultural context and complex interplay of factors such as status, stories, framing, and anchoring.
58:07 - 1:03:33 (05:26)
Summary
When designing incentives, it's important to consider the cultural context and complex interplay of factors such as status, stories, framing, and anchoring. The signal sent by the incentives should be tailored to the specific culture and demographic being targeted.
Episode#609 - Uri Gneezy - How To Understand Psychological Incentives
PodcastModern Wisdom
The speaker discusses the differences between education systems worldwide, specifically in terms of standardized testing and giving power to the people.
1:03:33 - 1:09:35 (06:01)
Summary
The speaker discusses the differences between education systems worldwide, specifically in terms of standardized testing and giving power to the people. He argues for a potentially more effective approach to education evaluation.
Episode#609 - Uri Gneezy - How To Understand Psychological Incentives
PodcastModern Wisdom
In order to effectively negotiate, understanding and acknowledging the other side's perspectives is important.
1:09:35 - 1:17:34 (07:58)
Summary
In order to effectively negotiate, understanding and acknowledging the other side's perspectives is important. This involves actively listening, asking questions, and providing solutions that meet both parties' needs.
Episode#609 - Uri Gneezy - How To Understand Psychological Incentives
PodcastModern Wisdom
The podcast host invites readers to check out his website, which contains his academic work, and encourages communication and feedback.
1:17:34 - 1:18:32 (00:58)
Summary
The podcast host invites readers to check out his website, which contains his academic work, and encourages communication and feedback. He also announces the launch of his book and reminds listeners to subscribe to the podcast.