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The Power of Incentives: Inside the Hidden Forces That Shape Behavior

Scheduling Reinforcement

Scheduling the rewards on intermittent reinforcement can be used on various schedules, each with its own degree of effectiveness and situations to which it can be appropriately applied. Some of the schedules are:

  • Fixed-ratio: used to reward based on the amount of work done.
  • Variable-ratio: are unpredictable as the amount of work done between rewards varies. This normally produces more work than any other schedule. (Varying the intervals between rewards also makes it unpredictable, but that often makes people feel unappreciated.)
  • Fixed-interval: rewards people for the time spent on a specific task. Response rates on this schedule are low as effort is not rewarded.

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The first views on motivation
The first views on motivation
  • At first, psychologist William James thought that only the initial act was conscious, thereafter behaviour was a spontaneous cascade of habits. He suggested we struggle with motivation when ...
Mathematics of motivation

When Ivan Pavlov and his dogs led to the discovery of learned behaviour through repeated exposure, and Edward Thorndike discovered the Law of Effect that stated that rewarded behaviours tended to increase, many psychologists were impelled to separate psychology from armchair introspection and formulated their theories as mathematical formulas.


  • The Drive x Habit Theory. Clark Hull's formula was sEr = D x sHr, which states that excitatory tendency (E) is the result of the drive (D) combined with the habit (H). The drive is nonspecific, such as hunger or thirst. The habit, however, depends on the stimulus (s) and response (r). But the theory turned out to be wrong and even opposite in many cases. 
  • Expectation x Value Theory. Drawing on ideas in economics and game theory, Edward Tolman and Kurt Lewis formulated an alternative account by evaluating motivation based on expectations. Tolman expressed the ideas as the mathematical formula: Subjective Expected Utility = Probability1 * Utility1 + P2U2 + P3U3 + … where subjective expected utility of an action equalled the motivation to act. But, if you expect a reward, why act and not simply passively wait for the expected reward? 
Motivation as change

Donald Hebb realised that existing theories were too focused on reacting to the immediate environment. Thoughts, ideas and goals could be just as strong for triggering action as sights and sounds.

Together with John Atkinson, they noted that the study of motivation had undergone a "paradigm shift", where motivation couldn't be seen as how actions get started, but how the organism decides to change its behaviour from one thing to another.

Personality Psychology: Important Terminology
Personality Psychology: Important Terminology
  • Classical conditioning: A behavioural technique where a natural stimulus is paired with a previously neutral stimulus. The previously neutral stimulus eventually cause the r...
Defining Personality

While we often talk about personality, psychologists disagree on what exactly constitutes personality.

Personality is then broadly defined as the characteristic patterns of thoughts, feelings, and behaviours that originate within the person and make a person unique. It is what makes you, you.

Key Characteristics of Personality
  • Personality is organized and consistent.
  • Personality is generally stable, but the environment can influence it. A shy personality in social situations might take charge and be more outspoken in an emergency.
  • Personality causes behaviours to happen. You react to your environment based on your personality.
Smartphones and Messaging
Smartphones and Messaging

Phones became smart more than a decade ago and started doing almost everything.

While the app store has millions of apps to take care of our needs, connecting with other people remains one ...

The Message

The technological tools we use keeps us connected to the people that matter to us, and the text (later rich text message) is one of the oldest ways of communication since portable phones came into existence.

It also has a hidden secret that makes us keep checking it.

The Four-Step Hook

... deployed by the messaging software and many other products is composed of:

  1. Trigger
  2. Action
  3. Variable Reward
  4. Investment

Understanding these four steps makes us see the hidden psychology behind a user's daily tech habits.