Name: Carrots and Sticks
Rating: 4.2 (27 reviews)
Author: Ian Ayres

What’s in it for me? Learn how to offer yourself and others incentives to live the life you want.

Does it drive you nuts when you see someone throwing trash on the ground? No one likes a litterer. For this reason, many city governments levy a fine at people caught in the act of littering.

But does this punishment deter bad behavior? Not really. Despite the threat of a fine, plenty of people still toss trash around.

So how can you inspire society to do the right thing? These blinks explain which types of incentives, based on insights in human psychology, really motivate people.

Importantly, you can use the same incentives to curb your own bad behavior. So, if you want to stop smoking or perhaps shed a couple of pounds, these blinks will show you the road to success.

In these blinks you’ll discover

why fining parents for picking up kids late at school inspired more tardy pick-ups;
why even though drugs are harmful, many addicts can’t kick the habit; and
why governments should give collected parking fines to Scientologists.

We tend to favor small, immediate rewards over bigger, long-term ones. The future is too uncertain!

How many people do you know who binge on candy even though they’re trying to lose weight? Or perhaps you’ve a friend who smokes yet wants to quit, but can’t seem to give it up.

What is it about bad habits that are so hard to break?

It’s part of human nature to forgo long-term benefits for immediate rewards. For instance, if you asked a group of friends about their personal goals, many would probably talk about things like staying healthy or saving for retirement.

But when it comes right down to it, most of us forget our goals the moment we grab a candy bar or splurge on a fancy new gadget.

This is particularly evident in the behavior of drug addicts. After all, drug addicts do themselves serious physical harm in exchange for the immediate pleasure of a drug high.

Most addicts know this, but still can’t kick the habit. But we’re all not so different, really – many of us have vices to which we give in, in one part of life or another.

The bottom line is that we’re all addicted to now, and can easily postpone long-term goals to indulge in the present.

In general, people tend to reach for smaller but certain rewards over bigger, uncertain ones.

Economist Richard Thaler asked participants in a study to choose between either receiving one apple in one year, or two apples in one year and one day. Participants gladly waited the extra day to get both apples.

Yet our logic appears to change when faced with decisions affecting the nearer future. People offered one apple today or two tomorrow invariably chose the single apple – or immediate satisfaction.

Thaler’s findings point to a greater phenomenon, in that when an immediate reward is available, any bigger rewards for which we have to wait lose their attraction. Why? Because having to wait for something throws into question the certainty that it’ll occur at all.

We hate losing more than we like winning. For many, saving for retirement is like losing money.

Do you hate losing? If so, you’re not alone. People in general dislike losing something they have considerably more than they enjoy gaining something new.

In fact, the same phenomenon has been observed in primate behavior.

While our capacity for self-control may be limited, we can increase it through “exercise.”

Do you have strong willpower? Many of us think we do, but most of the time, we’re deluding ourselves. Several studies have shown that humans in general have limited self-control.

For instance, one study revealed that people taking a test tend to give up on a difficult puzzle much more quickly if tempted by candy before starting the test. Not just that, but the same people have a much harder time turning down the candy once they’ve finished.

Carrots are a reward, while sticks are a punishment. Which works best? Curiously enough, the stick.

Carrot, or stick? You’ve probably heard these two words used to describe incentives for people to do things they may not want to do. A carrot is a reward, and a stick is a punishment.

In general, it’s easy to change behavior by rewarding good actions and punishing bad ones.

Tiny sticks aren’t a deterrent. A big stick, however, makes a potential lawbreaker think twice.

So reprimanding bad behavior is the best way to ensure commitment to long-term goals. Yet for a cash fine to act as an actual deterrent, it is essential that the amount be substantial.

The higher the fine, in fact, the more effective the punishment!

Lots of little sticks might feel like a tickle. Hit with a big stick, and you can’t help but capitulate.

We know that our addiction to now dramatically predisposes us to seeking immediate rewards over longer-term goals.

This means that people who try to change their behavior for the better, like quitting smoking, end up in a vicious cycle of many small temptations that they struggle and often fail to resist.

Set yourself up with a commitment contract. A referee will help keep you in line to meet your goals.

Sticks and carrots offer effective incentives for curbing bad behavior. Yet we also need effective tools to overcome our addiction to now.

One way to do this is to make an agreement with yourself, called a commitment contract.

Long-term changes require realistic goals and long-term commitment contracts.

Say you want to enact drastic, permanent change, such as losing a lot of weight. You can’t just change your eating habits for a few weeks and expect the pounds to melt off of you.

To achieve permanent change, you need to set realistic goals.

Carrots and Sticks summary

Carrots and Sticks
summarized in 8 key ideas

What’s in it for me? Learn how to offer yourself and others incentives to live the life you want.

We tend to favor small, immediate rewards over bigger, long-term ones. The future is too uncertain!

We hate losing more than we like winning. For many, saving for retirement is like losing money.

While our capacity for self-control may be limited, we can increase it through “exercise.”

Carrots are a reward, while sticks are a punishment. Which works best? Curiously enough, the stick.

Tiny sticks aren’t a deterrent. A big stick, however, makes a potential lawbreaker think twice.

Lots of little sticks might feel like a tickle. Hit with a big stick, and you can’t help but capitulate.

Set yourself up with a commitment contract. A referee will help keep you in line to meet your goals.

Long-term changes require realistic goals and long-term commitment contracts.

Key ideas in Carrots and Sticks

Introduction

We tend to favor small, immediate rewards over bigger, long-term ones. The future is too uncertain!

We hate losing more than we like winning. For many, saving for retirement is like losing money.

While our capacity for self-control may be limited, we can increase it through “exercise.”

Carrots are a reward, while sticks are a punishment. Which works best? Curiously enough, the stick.

Tiny sticks aren’t a deterrent. A big stick, however, makes a potential lawbreaker think twice.

Lots of little sticks might feel like a tickle. Hit with a big stick, and you can’t help but capitulate.

Set yourself up with a commitment contract. A referee will help keep you in line to meet your goals.

Long-term changes require realistic goals and long-term commitment contracts.

What is Carrots and Sticks about?

Who should read Carrots and Sticks?

About the Author

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Carrots and Sticks summary

Carrots and Sticks summarized in 8 key ideas

What’s in it for me? Learn how to offer yourself and others incentives to live the life you want.

We tend to favor small, immediate rewards over bigger, long-term ones. The future is too uncertain!

We hate losing more than we like winning. For many, saving for retirement is like losing money.

While our capacity for self-control may be limited, we can increase it through “exercise.”

Carrots are a reward, while sticks are a punishment. Which works best? Curiously enough, the stick.

Tiny sticks aren’t a deterrent. A big stick, however, makes a potential lawbreaker think twice.

Lots of little sticks might feel like a tickle. Hit with a big stick, and you can’t help but capitulate.

Set yourself up with a commitment contract. A referee will help keep you in line to meet your goals.

Long-term changes require realistic goals and long-term commitment contracts.

Key ideas in Carrots and Sticks

Introduction

We tend to favor small, immediate rewards over bigger, long-term ones. The future is too uncertain!

We hate losing more than we like winning. For many, saving for retirement is like losing money.

While our capacity for self-control may be limited, we can increase it through “exercise.”

Carrots are a reward, while sticks are a punishment. Which works best? Curiously enough, the stick.

Tiny sticks aren’t a deterrent. A big stick, however, makes a potential lawbreaker think twice.

Lots of little sticks might feel like a tickle. Hit with a big stick, and you can’t help but capitulate.

Set yourself up with a commitment contract. A referee will help keep you in line to meet your goals.

Long-term changes require realistic goals and long-term commitment contracts.

What is Carrots and Sticks about?

Who should read Carrots and Sticks?

About the Author

Categories with Carrots and Sticks

Books like Carrots and Sticks

People also liked

Discover the Blinkist catalogue

Popular titles

Popular categories

Popular topics

Trending topics

Carrots and Sticks
summarized in 8 key ideas