Tag Archives: Behavioural Economics

Inputs, Output and Outcomes – Part 2

Posted on Sun 13 Oct 2019 by Andrew Jacopino

In the previous article (see Inputs, Output and Outcomes – Part 1) I looked at the difference between inputs, outcome and outcomes from a Performance Based Contracting (PBC) perspective in order to highlight the benefits and pitfalls of this approach. … Continue reading →

Posted in Contract Consequences, Outcome, outcomes, Performance Measure, the How, the What, the Why | Tagged Behavioural Economics, Dr Andrew Jacopino, PBC, PBL, Performance Based Contracting, Performance Based Logistics | 1 Comment

How to Nudge a Performance Based Contract (PBC) – Part 2

Posted on Sat 24 Aug 2019 by Andrew Jacopino

In the previous article (see How to Nudge a Performance Based Contract (PBC) – Part 1) I described how successful contracts deliver the desired outcomes of both buyers and sellers; the classic “win-win” outcome that we all strive for. We … Continue reading →

Posted in Behavioural Economics, Nudging, the What, the Why | Tagged Behavioural Economics, Cass Sunstein, Dr Andrew Jacopino, PBC, PBL, Performance Based Contracting, Performance Based Logistics, Richard Thaler | Leave a comment

How to Nudge a Performance Based Contract (PBC) – Part 1

Posted on Sat 10 Aug 2019 by Andrew Jacopino

Commercial instruments, especially sophisticated ones such as Performance Based Contracts (PBCs), have the ability to shape the behaviour of both buyer and seller. While many commercial practitioners see contracts in their simplest form, an explicit and directive agreement between buyer … Continue reading →

Posted in Behavioural Economics, Nudging, the How, the Why | Tagged Behavioural Economics, Cass Sunstein, Dr Andrew Jacopino, PBC, PBL, Performance Based Contracting, Performance Based Logistics, Richard Thaler | 5 Comments

Perverse Incentive Follow-up

Posted on Sat 27 Apr 2019 by Andrew Jacopino

In earlier articles (see Perverse Incentives – Part 1 and Part 2, and Unintended and Perverse Outcomes) I discussed the importance of checking the Performance Management Framework (PMF) within your Performance Based Contract (PBC) to watch for perverse incentives. Those … Continue reading →

Posted in Behavioural Economics, Book, Case Study, Incentives, Nudging, perverse incentives, the How, Uncategorized | Tagged Behavioural Economics, Case Study, Dr Andrew Jacopino, incentive, PBC, PBL, Performance Based Contracting, Performance Based Logistics, perverse incentives, Perverse Outcomes | 1 Comment

Perverse Incentives – Part 2

Posted on Sat 19 Jan 2019 by Andrew Jacopino

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 Behavioural Economics, cobra effect, Dr Andrew Jacopino, PBC, PBL, Performance Based Contracting, Performance Management Framework, perverse incentives, Perverse Outcomes | Leave a comment

Perverse Incentives – Part 1

Posted on Sat 05 Jan 2019 by Andrew Jacopino

“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 Behavioural Economics, cobra effect, Dr Andrew Jacopino, PBC, PBL, Performance Based Contracting, Performance Based Logistics, perverse incentives, Perverse Outcomes | 2 Comments

Unintended and Perverse Outcomes

Posted on Sun 15 Jul 2018 by Andrew Jacopino

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 →

Posted in Behavioural Economics, Case Study, Incentives, Outcome | Tagged Behavioural Economics, Key Performance Indicator, KPI, PBC, PBL, Performance Based Contracting, Performance Based Logistics, performance measures, Perverse Outcomes, Unintended Outcomes | 2 Comments

Understanding Behavioural Economics

Posted on Thu 08 Oct 2015 by Andrew Jacopino

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 →

Posted in Behavioural Economics, Behaviours, Nudging, the Why | Tagged Behavioural Economics, PBC, PBL, Performance Based Contracting, Performance Based Logistics | Leave a comment

Carrot and Stick (Part 1)

Posted on Fri 17 Jul 2015 by Andrew Jacopino

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 →

Posted in Behavioural Economics, Behaviours, the Why | Tagged Behavioural Economics, carrot, negative incentive, PBC, PBL, Performance Based Contracting, Performance Based Logistics, positive incentive, Richard Thaler, stick | 1 Comment

History of Behavioural Economics

Posted on Sun 26 Apr 2015 by Andrew Jacopino

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 →

Posted in Behavioural Economics, Nudging | Tagged Behavioural Economics, Choice Architecture, Nudge, PBC, PBL, Performance Based Contracting, Performance Based Logistics, Performance Management Framework | Leave a comment