273. Mixed Signals: How Incentives Really Work, with Uri Gneezy

<p dir="ltr">In today's conversation, I am joined by Dr. Uri Gneezy. Uri's research focus is on putting behavioral economics to work in the real world, where theory can meet application. He is looking for basic research as well as more applied approaches to topics like incentives-based interventions to increase good habits and decrease bad ones, Pay-What-You-Want pricing, and the detrimental effects of small and large incentives. In addition to the traditional laboratory and field studies, he currently works with several firms conducting experiments which use basic findings from behavioral economics to help companies achieve their traditional goals in nontraditional ways.</p> <p dir="ltr">You may be familiar with Uri's name because he coauthored the wildly popular book, The Why Axis with John List, who was on the show last year talking about his book The Voltage Effect. </p> <p dir="ltr">I have a feeling you're going to really enjoy this conversation as it is about a topic people in business are thinking, talking and asking about all the time: incentives. Most specifically, Uri talks about what happens when we mix our messages (it happens a lot more often than you realize) and how that impacts behavior. There are tons of fascinating and practical examples in the book, and we will talk about a few of them today in the episode.</p> <h3 dir="ltr">Show Notes:</h3> <ul> <li dir="ltr">[00:42] In today's conversation, I am joined by Dr. Uri Gneezy. Uri’s research puts behavioral economics to work in the real world where theory can meet applications.</li> <li dir="ltr">[03:15] Uri shares his background and the work he does in behavioral science. He is a behavioral economist and most of his work is around how incentives really work and how they can change the world. </li> <li dir="ltr">[05:19] When you give the incentives it is not just the money, reward, or recognition that you give, you are also sending a message and telling a story. If you don’t really understand how the incentive can shape or change the story you migh