Saturday, September 17, 2011

Carrots And Sticks: Unlock The Power Of Incentives To Get Things Done - Ian Ayres

carrots and sticks: unlock the power of incentives to get things done - ian ayres
carrots and sticks: unlock the power of incentives to get things done - ian ayres

A Letter from Author Ian Ayres

Hi, I’m Ian Ayres, the author of Carrots and Sticks: Unlock the Power of Incentives to Get Things Done. This book is centrally about how to craft incentives and commitments that will work best for you. The new learnings of behavioral economics have a lot to say about how best to tailor incentives to make them more effective and virtually free. There are dozens of different choices on how to structure contractual commitments, but getting the right incentive is not just about setting the right price. Other people matter. Mindfulness matters. Activation matters.

I am not a neutral bystander on these questions. I care passionately about the benefits of commitment contracts and have already put that passion into action. Together with Yale economist Dean Karlan and Yale business student Jordan Goldberg, I founded a service, stickK, that lets people put their money where their mouths are. To date, our users have put almost $5,000,000 at stake.

stickK is a commitment store that helps you “stick” to just about any goal. You choose the form of accountability that works for you. You can then choose to referee your own contract (on your honor) or you can designate any other person in the world to be your referee. We also provide an optional “nagging service” or, if you prefer, you can put your reputation at stake and we’ll tell your designated friends and family members whether or not you succeeded. Most importantly, we let you put money at risk. This money will be forfeited if you fail to stick to your goal. You can even choose who gets the money if you don’t succeed—including a list of anti-charities.

I’m committed to the value of stickK as more than just a business idea. Like the President of the Hair Club for Men, I’m not just a founder of the company; I am also one of its clients. In 2007, I used a commitment contract to lose 25 pounds and I have kept it off now for more than three years.

But Carrots and Sticks is not an extended advertisement for stickK or for the value of commitment contracts. It explores not only how best to pick the right commitment tool, but also when it’s best to keep that tool in the box. All in all, I’ve tried to write a book that introduces you to dozens of stories of incentive devices in action—in academic experiments, in business, and at home. My hope is to provide you with news you can use—a new way of thinking about how best to change behavior.

DOWNLOAD CARROTS AND STICKS: UNLOCK THE POWER OF INCENTIVES TO GET THINGS DONE - IAN AYRES

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