Rewards And Penalties - Deepstash

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Rewards And Penalties

Organizations need to understand when to provide a reward to the person making the choice to promote active choice-making, or to initiate a penalty to make them provide a concrete answer.

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MORE IDEAS FROM THE SAME ARTICLE

While prompted to make a decision with a given set of options, a person has the freedom to refuse to actively make a choice.

The decision-making process of the person is affected by the default choice that will be automatically selected in case the person refuses to choose.

If a person is told about the economic incentives of their selection, they are more likely to make an active choice.

If the person is told about the pros and cons of their decision, they have a logical reason to make the desired choice, as it can minimize any potential lo...

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Default choices

90% of your daily decisions happen automatically, many shaped by your environment. Thus, most decisions are a habit, not a deliberate choice.

To make smarter choices, design smarter defaults. And habits can be developed by shaping the invisible defaults of your life.

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  • The odds you will get hit.
  • The average consequences of getting hit.
  • The tail-end consequences of getting hit.

The first two are easy to understand. It’s the third that’s hardest to learn, and can often only be learned through experi...

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The Way We Delude Ourselves

Cognitive Biases are a collection of faulty and illogical ways of thinking which are hardwired in the brain, most of which we aren’t aware of.

The idea of cognitive biases was invented in the 1970s by two social scientists Amos Tversky and Daniel Kahneman, with Kahneman winning the 200...

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