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Not singular in its approach to the topic, "The Why Axis" however has the freshness and catchiness of first responder reaction to field experiments. Many of these economical books for laymen are actually retellings of stories experienced by others. Here instead we have the actual experimenters narrating the how and why of their work. From societie's needs, to the people and groups involved in Reviews: Bookmark File PDF The Why Axis Hidden Motives And Undiscovered Economics Of Everyday Life Ebook Uri Gneezy solve. Learn to think differently to get different results. -Learn about the main elements of systems thinking. -How to apply the best systems thinking ideas, models, and frameworks in your life? -What are the biggest system errors, how to detect and fix them? -How can you improve your The Why Axis: Hidden Motives and the Undiscovered Economics of Everyday Life - Kindle edition by Gneezy, Uri, List, John, Levitt, Steven D.. Download it once and read it on your Kindle device, PC, phones or tablets. Use features like bookmarks, note taking and highlighting while reading The Why Axis: Hidden Motives and the Undiscovered Economics of Everyday blogger.coms:
The why axis pdf download
Until quite recently, the field of economics was dominated mainly by theory-making. Specifically, economists applied their intellects to the human world, and developed abstract models to explain and predict the unfolding of economic events.
At the heart of all this theory-making stood homo economicus —a narrowly self-interested individual who responded to incentives and disincentives in a perfectly rational way. To begin with, pioneering economists such as Amos Tversky and Daniel Kahneman introduced controlled lab experiments among other things into the fold.
More recently, economists such as Uri Gneezy and John A. List have stepped in and showed that controlled field experiments also have a place in economics. For Gneezy and List, the world is their laboratory: the two go about slyly manipulating the natural environment in a controlled way often fiddling with incentives and disincentives of all types to see how we humans respond to the tweaks.
Gneezy and List have been practicing this approach for upwards of 20 years now, and in this time they have helped shed light on everything from how to decrease crime rates; to how to improve school success; to how to encourage more charitable giving; to how to promote healthy living and decrease obesity; to how to set prices on products so as to maximize profits ; to how to understand and limit discrimination to name but a few lines of research of theirs.
And in their new book The Why Axis: Hidden Motives and the Undiscovered Economics of Everyday Life the two catch us up on their experiments and their results while also touching on the experiments of other like-minded practitioners. Take education, to begin with. Gneezy and List have gained a fair bit of attention recently for showing how monetary incentives can be used to help improve grades and graduation rates particularly with at-risk students —and even curb school violence; and here we are apprized of the ins and outs of the experiments that were used in this research.
What is less well-known is that the authors have also recently become involved in a massive longitudinal study that is designed to test the effectiveness of different approaches the why axis pdf download pre-kindergarten education.
Though still in its infancy, the study has already yielded some very interesting results; and given that the researchers intend to follow their experimental subjects throughout their lives, the study should help shed a great deal of light on just what approach to early childhood education is most effective. The authors cover everything from how much seed-money is needed for a project to maximize donations; to how to approach follow-up requests made to established donors; to how to leverage raffles, lotteries and tontines for best success.
The lesson: business tweaks including changes in pricing should be tested in a controlled way in a small market say a given city before being adopted across the board an approach that has been utilized to great effect by such companies as Intuit and Humana.
What follows is a full executive summary of The Why Axis: Hidden Motives and the Undiscovered Economics of Everyday Life by Uri Gneezy and John A. Thus I have decided to limit myself to discussing 3 lines of research of theirs that I deem to be most wide-ranging and important: education, charity and business. Take education, for example, the why axis pdf download. While enormous amounts of money are pumped into education all over the world, very little of this money has ever found its way into controlled experiments meant to determine just what methods of education work best.
And this is a real pity, because in many countries including the United States the education system may be said to be churning out some fairly lackluster results, the why axis pdf download. One of the very saddest things about the education system in America is how it is failing its most impoverished students. Indeed, the dropout rate among schools in poorer neighborhoods is frighteningly high. For example, in2 percent of high-income students dropped out, compared to 9 percent of low-income students.
Unfortunately, dropping out has negative knock-on effects that last a lifetime, the why axis pdf download. Just in terms of future earnings alone, the numbers are staggering. The data tell us that for each year of school that a student misses, his or her earning power drops by roughly 12 percent. The fact is that high school dropouts are also much more likely to get in trouble with the law, and spend time in jail; and thus dropping out not only negatively affects the dropouts themselves, but all of society loc.
Specifically, the two decided to run an experiment to see how monetary rewards might help potential dropouts stay in school. Gneezy and List chose to carry out their experiment in an impoverished district south of Chicago known as Chicago Heights. More than 90 percent come from poor families on food stamps; many come from foster homes; and most receive free or reduced-fee lunch.
And it is not that this response was merely a knee-jerk reaction. For instance, the authors had earlier set up an experiment wherein they offered students varying amounts of money as an incentive to raise donations for a charity loc.
Because the monetary reward effectively overrode the intrinsic reward of helping those in need, and the former was simply not as powerful a motivator as the latter though presumably this may have changed should enough money have been offered [loc. The lesson: money is not the only or even the most powerful motivator, and where intrinsic rewards are at play, offering a monetary reward can actually extinguish the intrinsic reward, thereby becoming counter-productive.
For potential dropouts, school work is drudgery, plain and simple. Resignedly, the board members accepted this argument, and Gneezy and List were given a pass to try out their controversial experiment loc. The only obstacle now was to come up with the money needed to get the experiment off the ground—not an insignificant matter. Armed with their funding, Gneezy and List set the why axis pdf download to design a monetary reward scheme that would get the most bang for their bucks, the why axis pdf download.
To begin with, the two decided to focus their resources on grade 9 students, for the statistics indicated that the greatest number of dropouts in high school occurred between the freshman and sophomore year altogether, Gneezy and List invited grade 9 students into the experiment [loc. In designing their experiment, the why axis pdf download authors made use of some very clever psychological tricks. For one thing, the why axis pdf download, the pair decided to issue their monetary rewards at monthly intervals, as opposed to in one lump sum at the end of the semester loc.
This would ensure that the incentives were shifted to the near term, which is better for appealing to immediate gratification loc. Most people are motivated more by rewards the more immediate they are [loc. Actually, in half the cases the reward was offered directly to the students, and in the other half it was offered to their parents—another bit of psychological manipulation that the authors felt may pay dividends loc.
So as not to alienate those students in the experiment that were having trouble meeting the monthly criteria, Gneezy and List set up special provisions for them.
So, what were the results of the experiment? We estimated that the program helped about 50 borderline students out of the in the experimental group to meet the ninth-grade achievement standards. Among the students who were on the brink of failing, we figured the program had increased achievement by about 40 percent.
Happily, these students continued to outperform their un-incentivized peers after the program ended in their sophomore year. In fact, our estimates suggested that about forty kids who would otherwise have dropped out would receive their diplomas because of our program. The School Violence Experiment: The Culture of The why axis pdf download Program in Chicago.
Finding a way to increase graduation-rates in a cost-effective way was surely a significant discovery for Gneezy and List, but the two wondered if their approach might not be able to help with an even more serious problem: school violence.
In an effort to find out, the two teamed up with one Ron Huberman, the head of Chicago Public Schools loc. However, Huberman also wanted to take advantage of an incentive-driven angle, so he invited Gneezy and List in to design and run an incentive scheme. The scheme that the 2 economists came up with was designed to leverage both competitive spirit as well as star-power.
In order to help the participating schools towards success, the why axis pdf download, the project arranged for each school to establish a Culture of Calm committee, made up of student leaders loc. Happily, the program succeeded in spurring significant improvements in all of the 32 schools that took part loc. However, one school in particular really stood out, and that was Farragut High. Motivated by the competition for the prize, the kids went to work applying peer pressure.
The incentive worked like magic. While Farragut High won the contest and was the only school to enjoy the free concert, all of the participating schools and all of their students reaped big benefits from the program.
The opportunity to see West, in fact, merely legitimized what the kids already wanted: a safe place to learn. To the why axis pdf download end, the why axis pdf download, the students succeeded beyond their wildest dreams. At all of the thirty-two schools in the program, the culture at the schools has remained calm. Aside from being interested in ways to help curb the biggest problems that currently face American schools, the why axis pdf download, Gneezy and List have also been involved in experiments designed to help maximize academic achievement.
Many of these experiments as with the experiments mentioned above have involved testing out various extrinsic rewards including monetary ones loc.
In other words, our education system is built more on hunch than science. Happily, though, there are people in the world who recognize the importance of the experimental approach, and who more importantly are willing and able to fork over the funds necessary to get this approach off the ground.
With this amount of money, Gneezy and List could afford to set-up a very sophisticated and in-depth experiment. Still, the two wanted to make sure they made the most of their money, so they decided to the why axis pdf download on the one area of education that they felt stood to yield the greatest benefit: pre-kindergarten.
The fact is that by the time students enter grade 1 there is already a wide gap between the highest and lowest achievers loc. Therefore, unlocking the mystery of the best approach to early childhood education not only stands to help all students get a head start on their education, but it also stands to help with closing the why axis pdf download achievement gap loc.
With these goals in mind, Gneezy and List decided to carry out their experiment in the district of Chicago Heights—the same underprivileged community wherein they had conducted their stay-in-school experiment loc. Now what the pair needed was a few different approaches to pre-kindergarten education to test one against the other. From their preliminary research, they decided on 3. In the first approach, the curriculum is more traditional in nature.
In this school, students work on learning their numbers and letters a la Sesame Streetand are introduced to basic reading. Small groups of children huddle around the table with their teacher and help each other identify shapes. Several children read to each other in the cozy reading corner, assisted by the teacher, who walks around and helps them.
The second approach is quite about more experimental in nature. Specifically, the second approach focuses more on learning-by-doing, and there is a special focus on non-cognitive, character-based traits, the why axis pdf download, such as delayed the why axis pdf download loc. Another little boy pretends to bake pies and cakes on the play stove. Later, the children practice playing games in which they see who can stand on one foot like a ballerina, or act like a quiet guard.
The third approach is known as the Parent Academy. Here, the students in the program are not placed in an institutional setting. Rather, their parents attend classes and learn how to implement the strategies practiced in one of the 2 main educational approaches loc.
These financial incentives are either short-term or long-term. This kind of longitudinal study is necessary in order to understand just what the effects of the different approaches are in the long-term. Though the experiment has only just begun, the early results are very encouraging.
Before taking a look at the results, it should be noted that, at the beginning of the program, the children in the experiment were tested to be in the 30 th to 40 th percentile in terms of cognitive development—when compared with other children nationwide [loc, the why axis pdf download. Let us look at the two institutional approaches first. Over the first ten months of the program, students in the Literacy Express program have leapt ahead by more than nineteen academic months on their cognitive scores, effectively doubling that of the average preschool-aged child.
That is, for every month that has passed, the students have learned almost two months of material. Those children are now testing roughly at the national average for cognitive test scores, and are doing quite well on noncognitive skills such as self-control.
Students in the two preschool programs are now doing the why axis pdf download than the average child nationwide when tested on both cognitive and noncognitive skills. As for the Parent Academy, the students here are also showing improvement—though the improvement has not been as strong as with the children in either of the two institutional settings loc.
Also, there is a significant discrepancy between the short-term reward group and the college treatment. Importantly, while the results at this point favor the institutional settings over the Parent Academy, there are indications that the parental approaches and particularly the college treatment may yet pay off big dividends in the long-run the why axis pdf download. One final point of interest: Gneezy and List found that the greatest gains across all the why axis pdf download the groups occurred in the first few months of the program loc.
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