Upside of Irrationality Chapter 1: Paying More for Less

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Uploaded by on Apr 14, 2011

Dan discusses Chapter 1, Paying More for Less: Why Big Bonuses Don't Always Work

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Education

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  • traditional economist hate behavioral economics but i love it. choosing to ignore something because it defies the assumption that traditional economics has based all its practices on (that everyone is rational) is in itself irrational

  • @ jakejones111, That's a good idea. I hope someone builds an experiment from it.

  • Absolutely brillant. Completely turns traditional economics on its head. Makes me think about economics in a whole new way

  • Could your findings only hold true in the short run?

    Hypothesis: Over the long run, incentives for high performance may increase learning and training. Thus, they could increase performance, even in cognitive tasks.

    e.g. Professional athletes, medical and law students, etc.

  • This is really interesting. A few weeks ago, before a Champions League game between FC Barcelona and Shakhtar Donetsk , the owner of the Ukrainian club offered the players a bonus to win the match.

    The size of the bonus was the one that was actually impressive. 1 million Euros/ player! That was for most of the players more than what they earned per year. The outcome? They lost the game 5 goals to 1.

    But based on what you;re saying here it appears that football/soccer it's a mental task ...

  • Loving this series of video! Thanks, Dan!

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