Applied Decision Making Aids in the News

NPR covers ways psychologists have discovered to nudge irrational decisions  in a better direction.

An excerpt:

In the city of Greensboro, N.C., there’s a program designed for teenage mothers. To prevent these teens from having another child, the city offers each of them $1 a day for every day they are not pregnant. It turns out that the psychological power of that small daily payment is huge. A single dollar a day is enough to push the rate of teen pregnancy down, saving all the incredible costs — human and financial — that go with teen parenting.

Most of the article focuses on “economics,” but of course money is only a context for the decisions they discuss.

One thought on “Applied Decision Making Aids in the News”

  1. I worked a few summers for a rental car company while in college. To encourage us to stay throughout the busy season, the company gave us a similar financial incentive. If we worked past a certain date in August, without taking time off, we would be given an additional 25 cents for every hour worked throughout the summer. Over a 12-week period, this equated to $120, or about half a week’s pay. It doesn’t seem like much now, but it was an effective motivator at the time.

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