Reward vs punishment: How humans respond to social incentives

'Sin tax', fines, loyalty points and commissions are a few examples of how desired behaviour can be driven through social incentives.

One of the basic components of a functional, cooperative society is a code of law, where the laws are usually enforced by some kind of incentive.

Social incentives can either be positive (rewards) or negative (punishments); and a society must decide which combination to use to achieve the greatest efficiency, or the highest level of cooperation at the lowest cost.

CapeTalk and 702 presenter Redi Tlhabi explores whether rewards or punishment are most effective in creating a cooperative society in South Africa.

Professor Chris Callaghan, Associate Professor in the School of Economic and Business Sciences (SEBS) at Wits University, says that it is always better to try and encourage good behaviour than punitive measures.

Behavioural economics literature shows that it is increasingly complex to answer questions about social incentives and group/individual decision making processes. It is difficult to generalise because we are all diffrent.

Professor Chris Callaghan, Associate Professor at SEBS

Callaghan says that values are the driving force behind the way individuals and groups respond to social incentives.

Listen to the full conversation from The Redi Tlhabi Show:


This article first appeared on 702 : Reward vs punishment: How humans respond to social incentives


Recommended

by NEWSROOM AI
Read More
Let your nose decide if docci claims into perfume industry are true

Let your nose decide if docci claims into perfume industry are true

Claims have been made that the perfume industry don't want consumers to know the real cost of making these products.

Start posting your Christmas gifts now, says post office

Start posting your Christmas gifts now, says post office

South Africans are urged to post parcels for the festive season to foreign destination now to avoid delays.

Rail Enforcement Unit to be rolled out this week in the WC

Rail Enforcement Unit to be rolled out this week in the WC

The unit is aimed at curbing crime on trains as well as the destruction of railway infrastructure.

Ramaphosa sets the ball rolling for the appointment of new NDPP

Ramaphosa sets the ball rolling for the appointment of new NDPP

Several legal entities and independent public institutions have been asked to help select possible candidates for the position.

Tax on sugar: Will it make you eat less of it?

Tax on sugar: Will it make you eat less of it?

Stephen asks dietician, Jane Badham if tax on sugar will have an impact on people eating less of it

Will rise in cigarette tax stop you from smoking?

Will rise in cigarette tax stop you from smoking?

Stephen looks at the World Health Organisation's proposal to increase tobacco taxes and it's impact (or not) on smoking

Popular articles
Rail Enforcement Unit to be rolled out this week in the WC

Rail Enforcement Unit to be rolled out this week in the WC

The unit is aimed at curbing crime on trains as well as the destruction of railway infrastructure.

WATCH: Monkey takes the wheel, and Trump says climate change will "change back"

WATCH: Monkey takes the wheel, and Trump says climate change will "change back"

Khabazela shares some of the most popular tweets, posts, and videos on 'What's gone viral'.

Ramaphosa sets the ball rolling for the appointment of new NDPP

Ramaphosa sets the ball rolling for the appointment of new NDPP

Several legal entities and independent public institutions have been asked to help select possible candidates for the position.

Tito Mboweni, Pik Botha, VBS and Floyd Shivambu - no holds barred on The Debrief

Tito Mboweni, Pik Botha, VBS and Floyd Shivambu - no holds barred on The Debrief

Politician Lindiwe Mazibuko, economist Refilwe Moloto, and journalist Rose Rogers have discussed the biggest topics this week.

Snakes season is here and if the crawlies visit you, here's what to do

Snakes season is here and if the crawlies visit you, here's what to do

Snake handler Willem van Zyk of Blouberg Snake Rescue says he's already being kept busy with callouts.

'VBS stolen money bought the most useless things like Ferraris and helicopters'

'VBS stolen money bought the most useless things like Ferraris and helicopters'

Deputy editor at Finacial Mail Sikonathi Mantshantsha says it is mind-boggling why no one has been arrested in the VBS saga.

Cape Town tenants could see property prices ease up, says RE/MAX

Cape Town tenants could see property prices ease up, says RE/MAX

The Cape Town rental market is said to be experiencing a major correction phase after an unjustified period of escalated prices.