I often find myself explaining incentives and rewards to people for some reason. This story from the classic work Punished By Rewards captures the essence well. It’s a story I keep at my fingertips. Very useful.
An old joke captures this phenomenon as well as any study could. It is the story of an elderly man who endured the insults of a crowd of ten-year-olds each day as they passed his house on their way home from school. One afternoon, after listening to another round of jeers about how stupid and ugly and bald he was, the man came up with a plan. He met the children on his lawn the following Monday and announced that anyone who came back the next day and yelled rude comments about him would receive a dollar. Amazed and excited, they showed up even earlier on Tuesday, hollering epithets for all they were worth. True to his word, the old man ambled out and paid everyone. “Do the same tomorrow,” he told them, “and you’ll get twenty-five cents for your trouble.” The kids thought that was still pretty good and turned out again on Wednesday to taunt him. At the first catcall, he walked over with a roll of quarters and again paid off his hecklers. “From now on,” he announced, “I can give you only a penny for doing this.” The kids looked at each other in disbelief. “A penny?” they repeated scornfully. “Forget it!” And they never came back again.
Rewards. Punishments. It’s all the same.