Tag Archives: Behavioural Economics

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

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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

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Unintended and Perverse Outcomes

A colleague from the Australian Department of Defence (thanks Hayley!) recently sent me a link to an article from the Canberra Times about “Losing our way: How the cult of the KPI has damaged our moral compass”.  This article is partly … Continue reading

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Understanding Behavioural Economics

In a previous post I had suggested those interested in Behavioural Economics should have a look at a free online course via http://www.edx.org titled Behavioural Economics in Action from the University of Toronto. While you can do this course at any … Continue reading

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Carrot and Stick (Part 1)

I am currently reading Richard Thaler’s new book, “Misbehaving – The making of Behavioural Economics” which has again brought up an interesting and long running debate on the application of positive incentives (gains or “carrots”) or negative incentives (losses or … Continue reading

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History of Behavioural Economics

For those you have read my thoughts on the use of Behavioural Economics as a method of optimising our approach to Performance Based Contracting (PBC) (see earlier posts on Is Your Contract Fun? and Designing Successful PBCs) I wanted to … Continue reading

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Nudging Performance

For those that found my previous post that compared PBCs with the notion of nudging interesting I would highly recommend you read this insightful question and answer (Q&A) session with Richard Thaler, co-author of the book Nudge: Improving Decisions About Health, … Continue reading

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