Carrots and Sticks audiobook cover - Unlock the Power of Incentives to Get Things Done

Carrots and Sticks

Unlock the Power of Incentives to Get Things Done

Ian Ayres

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Motivation & InspirationCorporate Culture

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Carrots and Sticks
Human Psychology & Biases+
Incentives: Carrots vs. Sticks+
Commitment Contracts+
Achieving Long-Term Change+

Quiz — Test Your Understanding

Question 1 of 8
According to economist Richard Thaler's apple experiment, why do people generally choose a smaller immediate reward over a larger future reward?
  • A. Having to wait for a reward makes the future outcome feel uncertain.
  • B. People inherently value immediate gratification more than the actual item being offered.
  • C. Future rewards are usually heavily taxed, decreasing their actual value.
  • D. People lack the ability to accurately calculate the long-term value of an item.
Question 2 of 8
How does the 'Save More Tomorrow' program cleverly bypass the human tendency of loss aversion?
  • A. It matches employee contributions with immediate cash bonuses to offset the feeling of loss.
  • B. It encourages people to save money from future pay raises rather than their current paycheck.
  • C. It penalizes employees with a fine if they fail to contribute to their retirement accounts.
  • D. It shows employees a frightening projection of their future poverty if they don't save today.
Question 3 of 8
Based on the book's insights into self-control, what is the best strategy for changing bad habits?
  • A. Tackle all your bad habits simultaneously to build momentum and discipline.
  • B. Rely entirely on external rewards because internal self-control is a myth.
  • C. Focus your limited self-control on changing basic, singular behaviors one at a time.
  • D. Avoid making any changes until you feel your willpower is completely unlimited.
Question 4 of 8
Why does the author argue that 'sticks' (punishments) are often more effective and practical than 'carrots' (rewards)?
  • A. Punishments create a positive feedback loop in the human brain that accelerates learning.
  • B. Rewards usually make people feel manipulated, causing them to rebel against the rules.
  • C. Punishments are easier to distribute evenly across a large population than rewards.
  • D. People are more motivated to avoid loss, and a severe punishment doesn't cost the enforcer any money if it deters the behavior.
Question 5 of 8
What was the unintended consequence of a school imposing a small $3 fine on parents who picked up their children late?
  • A. Parents protested the fine and removed their children from the kindergarten.
  • B. More parents started showing up late because paying the fine alleviated their guilt.
  • C. The school made so much money they stopped caring about the teachers' schedules.
  • D. Parents began bribing teachers directly to avoid the official fine.
Question 6 of 8
How can the destination of a collected fine influence its effectiveness as a deterrent?
  • A. A fine is more effective if the money goes to a charity that the rule-breaker supports.
  • B. A fine is more effective if the money goes to an organization the rule-breaker strongly disapproves of.
  • C. A fine is only effective if the money goes directly to the local government.
  • D. The destination of the fine has no psychological impact; only the dollar amount matters.
Question 7 of 8
Why does the author suggest a $5,000 'smoking permit' instead of standard cigarette taxes to help people quit smoking?
  • A. Smokers prefer paying large upfront costs rather than being taxed daily.
  • B. A permit system allows the government to track smokers' health more accurately.
  • C. Small taxes are easily absorbed and don't overcome the immediate temptation to smoke, whereas one massive cost forces a stop.
  • D. The government needs larger lump sums to properly fund national anti-smoking campaigns.
Question 8 of 8
What is a crucial element of setting up a successful 'commitment contract' for yourself?
  • A. Keeping the contract entirely private so you don't feel embarrassed if you fail.
  • B. Choosing an impartial referee who will strictly enforce the agreed-upon punishment.
  • C. Choosing your closest, most forgiving friend to act as the referee.
  • D. Setting the punishment to be relatively minor so you don't get discouraged early on.

Carrots and Sticks — Full Chapter Overview

Carrots and Sticks Summary & Overview

Carrots and Sticks (2010) is the bible of behavior, incentives and self-control. These blinks will explain how you can swap out bad habits with rewards, punishments and formal commitments to yourself. You’ll gain the skills necessary to tackle challenges such as losing weight, quitting smoking and saving for retirement.

Who Should Listen to Carrots and Sticks?

  • People trying to quit smoking, lose weight or make exercise a habit
  • Psychologists, behavioral therapists, coaches and personal trainers
  • Managers or business owners looking to motivate employees

About the Author: Ian Ayres

Ian Ayres is an American lawyer and economist who teaches at both Yale Law School and Yale School of Management. In addition to cofounding the commitment contract website StickK.com, he has authored several books including Super Crunchers: Why Thinking-by-Numbers Is The New Way to Be Smart.

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