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crowding out

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    Incentive Design Entry #0378

    Why a fine can act as a price

    Before the fine existed, guilt kept the behaviour in check. After the fine was introduced, the behaviour increased — because paying made it permissible.

    Novice
    The hidden part #0378

    Priced misbehaviour becomes permitted misbehaviour. The fine did not add a cost; it removed a prohibition.

    Open file
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    Habit Loops Entry #0308

    The reason a reward too large kills the habit

    A child who drew for fun stops when the gold star is removed. The reward replaced the reason, and when the reward left, the reason did not return.

    Adept
    The hidden part #0308

    A reward does not sit beside intrinsic motivation. It sits on top of it, and when lifted it takes what was underneath.

    Open file
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    Incentive Design Entry #0382

    Why a referral scheme attracts the wrong customers

    Paying for introductions selects the people most responsive to being paid. Volume rises and average customer quality moves in the other direction.

    Novice
    The hidden part #0382

    An incentive selects who responds to it. A per-head fee replaces the referrer’s judgement with their willingness to be paid.

    Open file
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    Achievement Architecture Entry #0704

    The reason a title beside your name beats a cash bonus

    A visible title next to a username outperforms a cash bonus because the title is a persistent public identity marker, while cash is consumed and forgotten once spent.

    Adept
    The hidden part #0704

    Cash is spent and gone. A title beside your name watches you from your own profile, demanding that you remain the person it says you are.

    Open file