
In "Mixed Signals," behavioral economist Uri Gneezy reveals why incentives often backfire. Adam Grant-endorsed and praised by Angela Duckworth, this playbook exposes how Wells Fargo's scandal stemmed from misaligned rewards. Want to motivate effectively? The secret isn't more incentives - it's better ones.
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A father teaches his son that honesty separates good people from bad ones. Days later, standing at Disney World's ticket counter, he lies about the boy's age to save $117. The child's confusion cuts deep: "Daddy, you told me only bad guys lie, and you just did!" This moment reveals something profound about human behavior-we constantly send mixed signals, saying one thing while incentivizing another. This disconnect shapes everything from parenting to corporate culture to public policy. Companies preach teamwork while rewarding individual performance. Governments promote environmental responsibility while subsidizing pollution. Schools emphasize learning while obsessing over test scores. The pattern is everywhere once you notice it: our incentives betray our stated values, and people inevitably follow the money, not the rhetoric. What makes this particularly fascinating is that incentives don't just motivate behavior-they communicate what truly matters. When a CEO talks about long-term vision but bonuses reward quarterly earnings, employees receive a crystal-clear message about priorities. Think about that Disney World dilemma. What could the company do to reduce dishonesty without creating hassle through documentation requirements? The solution is elegantly simple: require that children be present when purchasing tickets, or have the child state their own age. This forces parents to either lie directly in front of their children or pay the full price-a powerful signal about honesty that aligns words with actions. The challenge isn't just designing better incentives; it's understanding how they function as a language, sending signals that can either reinforce or completely undermine everything we claim to believe.
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