A Very Simple Bad Decision

In Total, By Giving People $30 Bonus, Intel Lost Almost 5 Percent Of Productivity. That's A Lot. Now, Think About It. You Give Money Because You Think This Would Increase Motivation. It Actually Decreases Motivation.

What People Do Is They Pay The Small Loans First. Why? Because They Enjoy Making The Number Of Loans Smaller. But Of Course It Is A Very Ineffective Way To Pay Debt Down.

One Of The Big Lessons From Behavioral Economics Is That We Make Decisions As A Function Of The Environment That We're In.

We Are All Far Less Rational In Our Decision-making Than Standard Economic Theory Assumes. Our Irrational Behaviors Are Neither Random Nor Senseless: They Are Systematic And Predictable. We All Make The Same Types Of Mistakes Over And Over, Because Of The Basic Wiring Of Our Brains.

The Major Thing That Holds You Back When You're Trying To Change A Bad Habit Like Eating, Smoking, Or Drinking Too Much Is Your Belief You Are Out Of Control.