Conservative Banker
This is a blog on the incentives of a conservative banker and why they say No a lot more than they say Yes.
Category: Incentive caused bias
5th law of Incentives
This blog is about the 5th law of incentives which says that to change outcomes, you need to change incentives.
To persuade
Ben Franklin said to persuade you must appeal to interest. In the blog I have provided 3 case studies on how people have convinced the other party to get wonderful results!
Everyone wins with Akshayakalpa
A somewhat detailed account of Social Investing and the business model of Akshayakalpa’s organic dairy.
What you incentivize is exactly what you’ll get
Never, ever, think about something else when you should be thinking about the power of incentives.
Incentives, not intentions, drive the outcome
People understand incentives. They understand what is good for them and what isn’t. They aren’t moved by the noble intention; they are more concerned by what’s in it for them.
Privatized benefits, socialized costs.
A made in India credit crisis is taking place.
Short feedback loops
Short feedback loops are powerful. They tell us what we did right and reward us for it and vice-versa, they tell us what we did wrong and punish us for it. Therefore by rewarding or punishing our behavior, short feedback loops alter our behavior.
Show me the incentives and I will show you the outcome
We human beings we are self centered. Our own interests come first; this is just how we are. We respond to incentives especially if they appeal to our self interest. And if the incentives don’t appeal, there would be unintended consequences. That is why Charlie Munger said: Show me the incentives and I will show […]
Interest upon Interest 