Incentives and the Cobra Effect
boz.com
boz.com
Without getting into details, a lot of the value of our platform is derived from having discreet users connected to an organization.
Rather than restricting or trying to educate people not to share accounts, we changed the pricing structure to a flat subscription which almost comically led to an explosion in new user account creation. This led to our customers getting the full intended value which led to a big reduction in churn and an increase in WoM referrals.
Momentum is a pretty powerful force.
[Edit]: I thought I'd add a clear example because I was reminded of it. When I tell people that return free filing taxes could really simplify taxes for people at first agree and then start pointing out a bunch of edge cases. So I argue that if we could just get the 15 million Americans who use the 1040 EZ then that's a big step in the right direction. It never goes well and it is never considered that just autofilling everything you normally put in by hand significantly reduces time regardless of how you do your taxes. Maybe I'm just bad at making cases, maybe people are hard of hearing, maybe both. (this is not the argument I make in full, obviously)
A linguistic distinction may help if we say that incentives are not quite the same thing as motives.
Motives can be intrinsic, coming only from one actor. "I am motivated to learn the piano". (See Pink, "Drive" etc)
Incentives are a relation between two actors, one (leader/manager) who sets the incentives to shape the behaviour of another. The 'incentivised person' is acted upon and is the target of the incentives.
That means the leader has to have a working model of both the environment (and other parametric factors) and of the group or individual they want to incentivise.
If you challenge that internal working model you're not just playing with logic and reason about parameters, you're challenging someone's perception - and that's much closer to the ego.
There was a good article posted earlier by Christine VanDeVelde Luskin on intrinsic and extrinsic motivations in the Bing preschool. Kids always know when you're playing games at "incentivising" them. They know it's a "bribe", which lessens your integrity, and they act up in response.
In my opinion the manipulator has a bit of a binary choice. Either be absolutely up-front and tell people "I am doing X as an incentive for you to behave as Y, and I expect accordant behaviour", or, be so clever as totally hide your manipulation. The former requires the overt exercise of power, or at least risks the vulnerability of total honesty.
I think nost perverse incentives come from people treading the middle ground, being deceptive, thinking they are being clever nudging others. But those others see right through the game.
Management issued a directive that there should be "no failed sprints". Teams started either putting 1-3 small tickets on the sprint, or filling the sprint with tickets which have already been technically completed (during the previous sprint, naturally). Any difficult or complex tickets were simply not placed on a sprint until they were figured out.
After a lifetime of witnessing tax cuts grow wealth inequality and burden the poor and middle classes, I view people in favor of them with concern. I wonder if they're able to extrapolate cause and effect to understand the ramifications of their choices. And they look at me the same way, I imagine as an astonishing waste of potential since I'm apparently miserable all the time and unable to cope with a world that wasn't designed for me, when I could just conform and be wealthy and successful. I don't know what to say to that, because I'm not sure that either of us is wrong.
We can get mad about this stuff and pout and refuse to cooperate, but it reminds me of the scene in the Matrix when Neo is faced with saving humanity or the one he loves. The logical choice often isn't the right one, because consciousness and free will can tap into higher-level aspects of reality that transcend logic via intuition and emotions like love.
That may be because what people argue about is very often not what they actually care about, because what they care about is outside the Overton window. You can't really argue that we should just harm black people for being black in order to make miserable white people feel a little better about their lives in comparison, so instead you argue about drug laws and being "tough on crime". You can't really argue that the poor and sick should just die on the streets (although this did get an applause at a Republican convention) so instead you argue about people taking advantage of the welfare system. You can't really argue that men should have utter dominion over women, so you instead argue about killing unborn babies. These things move the Overton window in the direction you want, so that next time you can argue the more extreme version.
Who would want to simulate these things? That would just open up the possibility of being proven wrong. Wrong or right has nothing to do with it: they just want to hurt and control people.
> After a lifetime of witnessing tax cuts grow wealth inequality and burden the poor and middle classes, I view people in favor of them with concern. I wonder if they're able to extrapolate cause and effect to understand the ramifications of their choices.
But they know that tax cuts grow wealth inequality. That's what they want.
> And they look at me the same way, I imagine as an astonishing waste of potential
They don't look at you at all, unless they think they can make a caricature of you to parade on the news and use as a straw-man punching bag. Otherwise they barely know or care that you exist at all. They certainly don't give a shit about your "potential".
Obviously everyone knows exactly which half of people I'm talking about.
Not sure when the aim to strike a balance was lost.
"hog hunting became so popular that vehicles were used to transport feral hogs to new locations to provide additional hunting opportunities (this practice is now regulated ). These transportation efforts allowed independent populations to pop up all over the map and greatly expedited the range expansion of this species."
https://feralhogs.tamu.edu/introduction-of-feral-hogs-to-tex...
After initially being confused, this reminded me that there are still people who consider sex education to be a "shockingly bad idea". And that made me sad...
Fee. People will pay huge 'fees' for some feature or access, or privilege.
Fine. People will riot in the streets if the exact same value was applied as a fine or a tax. 'what a huge fine, that is totally un-fair'.
A fee makes it seem like a choice.
A fine, everyone is mad, even people that it wont ever apply too.
Can you really breed Indian cobras in a home in captivity? Cobras are very good hunters and trying to keep them confined (remember how they are freed at the end of the story) and feed a growing population yourself is likely to take some time and effort, perhaps money that might not be worth the bounty?
Improperly disposing of your animals when you realize there's no market for them anymore is the issue here.
In what scenario is it easier to cut the tail of a living (fighting) rat, than to kill it first and the cut the tail off a dead rat?
But if your goal is to maximize the number of rat tails you end up with, cutting it off a live rat is probably worth the additional effort.
by whom?