The Why Axis - Incentives are complex

The Why Axis: Hidden Motives and the Undiscovered Economics of Everyday Life by Uri Gneezy and John List is more than just a book about current trends in economic research. It represents the cutting edge of economics and psychology through focusing on how to create effective incentives for different economic problems. For example, how can we get students to learn better or teachers instruct better?

There is a misnomer that money is the key to all incentive mechanisms. Pay more and you will get more effort is not always the solution. In fact, money may be a disincentive for effort. The authors show that the simplistic view just does not work in the real world when tested through controlled experiments. The authors provide insights on the hidden motives of individuals which often are not what is expected. If you set up the right experiments, you can learn new insights for problems that have perplexed many researchers. The authors have just scratched the surface, but reader will have their minds racing to rethink their views on incentives. The chatty writing style of the authors can sometimes get in the way of a clear discussion on some issues but the book is worthy read that presents current innovative in economic research.