Large Stakes and Big Mistakes

Large Stakes and Big Mistakes

I’m on vacation, and catching up with some reading. Dan Ariely’s book on the Upside of Irrationality is so far decent, though a little too chatty at times (I like a little less of the human interest backstory, YMMV). 

In any case, one thing I plan to do over the next couple days is find and read some of the studies I hit in it that I find interesting. This one is pretty neat — an experiment with motivation through money and social stress that appears to confirm the existence of  Yerkes-Dodson Law in humans — as potential monetary/social reward increases, performance increases then decreases. In the case displayed above, the small rewards appear to have been set too high, so you don’t get the full curve here, but the deterioration at higher levels of payment is pronounced. 

And yes, I know you’ve probably seen Dan Pink cover a portion of this study — but do you want to spend your life watching TED videos, or do you want to read some research? Right. I thought so. 

[Note: the tables are not presented in-text, but scroll to the end of the paper and you’ll find them there.]

About these ads

One Comment on “Large Stakes and Big Mistakes”

  1. great info says:

    A different sort of bonus is the variable extra, this indicates you gat a specific percent in the sum anyone deposit. The percentage is different for each site – it could be 20% or even 50%. Some casinos even give you a 100% casino bonus. It is a way to have people last the digital game rooms, but a great online casino bonus means that you have to play through some guidelines especially when you wish to redraw your cash. This can be difficult because after you get a great online casino bonus you must meet some conditions which are not effortlessly accomplished. Even so, your efforts are going to be rewarded.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 157 other followers