Monthly Archives: January 2019

Perverse Incentives – Part 2

In the previous article (see Perverse Incentives – Part 1) I discussed why PBC practitioners need to be aware of the potential for perverse incentives in our PBC arrangements.  In this article let’s look at how PBC practitioners, both buyers and … Continue reading

Posted in Behavioural Economics, Behaviours, the What | Tagged , , , , , , , , | Leave a comment

Perverse Incentives – Part 1

“Common sense is not so common.” Voltaire In a previous article (see Designing Successful Performance Based Contracts) I highlighted three tests for a highly successful Performance Based Contract (PBC).  These were: Does the PBC drives the right behaviour in the … Continue reading

Posted in Behaviours, Incentives, the What | Tagged , , , , , , , , | 1 Comment