Carrots and Sticks

“Why do we often sacrifice tomorrow's benefits for today's pleasures? Understanding this tendency is the key to motivating yourself and others.”

1. Immediate Rewards Trump Long-term Benefits

People are naturally drawn to immediate gratification, often at the expense of future rewards. When faced with a choice between instant pleasure and delayed benefits, many select the former. This tendency explains why someone chasing health goals might still grab junk food or why a smoker struggles to quit despite knowing the risks.

This “addiction to now” shows up in studies like those conducted by economist Richard Thaler. Participants were more willing to wait an extra day for two apples in a year but found it difficult to resist taking one apple today when offered two tomorrow. Such behavior reveals how waiting for a reward, especially in the near term, makes the outcome feel less certain and less appealing.

The same dynamic can be observed in drug addiction. Beyond the physical dependency, addicts are drawn to the immediate high, even though they understand the long-term harm.

Examples

• Someone buys a fancy gadget instead of saving for retirement.
• Dieters break their resolutions for the short-term joy of sugary treats.
• A drug user continues harmful behavior for the allure of the immediate high.

2. Loss Aversion Drives Decisions

People hate losing more than they enjoy gaining. This aversion is rooted so deeply that it affects both humans and animals. Research with apes found they preferred a scenario where they gained an extra piece of apple over one where they could lose a piece—even though both options yielded the same result.

For humans, this behavior shows up in decisions about money and savings. Richard Thaler's “Save More Tomorrow” program leveraged this idea. Instead of asking people to save out of their current paycheck—something they saw as a loss—the program encouraged savings from future raises, a gain not yet felt.

By understanding loss aversion, it’s possible to shape incentives around what people are more willing to give up, which often ties to things they don’t already feel they own.

Examples

• Primate experiments that highlighted a preference for avoiding losses.
• People choosing not to save for retirement to avoid reducing their present income.
• Thaler’s program that let employees save based on unreceived future earnings.

3. A Limited Resource: Self-Control

Willpower is a finite resource. The more it’s tested or used, the harder it gets to resist temptations. Studies show that people forced to resist candy before a mental test performed worse and also found it harder to resist candy afterward. This implies that self-restraint can be “used up.”

This limited capacity highlights why multitasking self-improvement is so challenging. Focusing on losing weight and quitting smoking at the same time, for example, often overburdens self-control. The good news is that self-control can be trained, much like a muscle, to grow gradually stronger.

To effect real change, it’s better to tackle small, concrete goals one at a time, allowing a person to focus their limited willpower effectively and build momentum incrementally.

Examples

• People attempting a tough puzzle gave up faster if they avoided candy earlier.
• Smokers who also tried dieting were less successful at both.
• Researchers liken self-control growth to muscle strength through practice.

4. The Stick Often Beats the Carrot

Rewards and punishments both shape human behavior, but loss aversion makes threats of punishment more effective than generous rewards. A person fears losing $100 far more than they savor the thought of gaining $100.

The approach of “carrots and sticks” can be seen in everyday behavior. For instance, dog owners are more likely to clean up after their dogs if faced with threats of fines. However, carrots, like free pet supplies, can encourage the same behavior—but they're often costlier to implement than punishments.

Additionally, punishment systems can be designed cost-free. If a smoker faced a $1,000 penalty for lighting up, the habit would likely disappear faster than if they were offered rewards for abstinence.

Examples

• Government policies using fines to deter littering or smoking.
• Free dog food as a reward for responsible pet behavior.
• $1,000 fines making people re-think habits.

5. Small Fines Normalize Bad Behavior

Tiny punishments often backfire. Instead of discouraging bad behaviors, small fines can unintentionally make people feel justified. A study with late pick-ups at kindergartens showed that a modest $3 fine made parents feel forgiven rather than guilty, and they arrived late more often.

In essence, small penalties put a price tag on bad behavior without discouraging it. People may happily pay the fine if it’s minor, but substantial fines encourage compliance. Besides the amount, how a fine is framed plays a critical role. A parking fine assigned to a controversial organization, for example, generates more guilt and deters behavior compared to one benefiting a neutral or noble cause.

Examples

• Parents picking up children later after the imposition of small fines.
• Parking fines funding disliked entities demotivate infringing behaviors.
• Insignificant add-on taxes on unhealthy items having little effect on consumption.

6. Bigger Punishments Lead to Lasting Impact

When it comes to behavior change, one significant penalty often works better than minor penalties. For instance, instead of slightly raising cigarette prices through taxes, introducing a one-time $5,000 smoking permit for access to cigarettes could dramatically reduce smoking rates.

This principle works because big punishments make people stop and reconsider their actions. Sudden, substantial costs foster immediate reflection and behavioral adjustment, unlike the recurring and negligible impact of small taxes or fines.

Large punishments make the stakes feel more real and push individuals to prioritize longer-term benefits over short-term gratifications, offering a clean break from certain habits.

Examples

• Comparing negligible cigarette taxes with a game-changing smoking permit.
• Implementing steep fines for traffic violations to curb dangerous behavior.
• Taxing sugary drinks heavily rather than minutely adjusting prices.

7. Commitment Contracts Prevent Backslides

Commitment contracts, agreements with personal stakes, help people stick to their goals. These contracts tie unpleasant consequences, like public embarrassment or financial loss, to failures, making it harder to backtrack.

A good contract features meaningful deterrents, such as pledging money or risking public shame. For example, a professor used a contract promising to teach in a swimsuit if his weight-loss goals failed. Adding a neutral referee ensures fairness and accountability.

Social pressure also plays a big role. Public commitments leverage our desire to maintain good opinions in the eyes of others, further encouraging follow-through.

Examples

• Antabuse providing an instant hangover as punishment for drinking alcohol.
• A professor pledging to embarrass himself publicly to meet health goals.
• Appointing fair referees to ensure adherence to contracts.

8. Realistic Goals Lay the Foundation

Big, ambitious goals often lead to disappointment because they're harder to sustain. People who aim to lose more than 10 percent of their weight quickly often fail—many regain the weight or give up entirely. Starting with smaller, realistic targets makes success achievable and builds motivation over time.

In weight loss, aiming for just 5 percent is realistic and can create a foundation for further progress. Realistic pacing and honest assessments allow people to celebrate milestones, ensuring sustained effort instead of burnout.

Whether it’s weight, debt, or new habits, setting ambitious yet attainable goals paves the way for long-term success.

Examples

• Aiming for smaller percentage weight drops in dieting studies.
• Repaying smaller chunks of debt before tackling larger loans.
• Celebrating progress in habit-tracking programs like Dry January.

9. Change Requires Long-term Commitment

To maintain favorable habits and avoid relapsing, long-term commitment contracts are essential. For instance, after achieving weight loss, maintaining it can falter without a structured, ongoing agreement that ensures adherence.

A useful contract will set fixed boundaries, apply penalties for lapses, and monitor behavior over time to encourage consistency. Sustainability is key, and ensuring flexibility for natural ups and downs makes commitment more realistic.

By acknowledging the need for maintenance, people create guardrails that ensure their success isn’t just a temporary streak but a permanent life improvement.

Examples

• Structuring penalties to prevent small weight fluctuations from spiraling.
• Budgeting to curb overspending month after month.
• Incorporating maintenance plans into post-rehab programs.

Takeaways

1. Use a long-term punishment or reward system to motivate yourself and others to achieve goals.
2. Tackle one major behavior or habit at a time, and train self-control like a muscle for sustainability.
3. Draft commitment contracts with realistic goals, meaningful penalties, and impartial referees to keep yourself accountable.