Tag Archives: Richard Thaler

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

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 , , , , , , , | Leave a comment

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

Posted in Behavioural Economics, Behaviours, the Why | Tagged , , , , , , , , , | 1 Comment

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

Posted in Behaviours, Nudging | Tagged , , , , , , , , | Leave a comment

Is Your Contract Fun?

Katherine Milkman, an associate professor at Wharton, University of Pennsylvania, starts her behavioural economics class with the following video. . Having watched this you may be wondering what this has to do with PBC? Let me explain. If you agree … Continue reading

Posted in Behaviours, Definition, the Why | Tagged , , , , , , , , , , | 2 Comments