Abstract
It is safe to assume that we have all struggled to get things done. I had problems completing this review by my initially promised deadline; I even received an additional 4 weeks and did not make this revised due date! We make commitments to change varying aspects of our lives through New Year’s resolutions and weight loss programs. We join forces with friends to stop smoking. We pour down the drain every ounce of alcohol in our cabinets in an attempt to remain sober. And we fail, time and time again.
Our clients often set goals in our therapeutic relationships that are riddled with barriers to success. We revisit the objectives, revise appropriately, and hope the new trajectory proves more efficacious than the last. Ian Ayres’ Carrots and Sticks provides a thoughtful and humorous look at commitment contracts for both individuals and businesses alike. The book provides an inside look at the behavioral economic foundations of goal setting and the incentives and consequences associated with different types of commitment contracts.
Ayres begins by posing a simple hypothetical question about apples. “Wait, isn’t this book was about carrots?” you ask—just wait. The situation is simple: You are given the choice to receive one apple 1 year from now or two apples 1 year and 1 day from now. Economist Robert Thaler indicates that most people would prefer to double their profit by waiting an extra day. A second question, however, muddies the waters of rational choice theory. The second choice offers persons one apple today or two apples tomorrow. Rather than following the previously established pattern of substantial gains for an additional day of patience, people were now more opt to select the immediate receipt of one apple. Individual preferences, therefore, are shaped by “choice architecture” and are inconsistent across time. This reversal is coined hyperbolic discounting. The short synopsis posits that individuals become increasingly impatient as time goes on when working toward goals. Ayres provides further support for these behaviors by highlighting work of Ainslie and Herrnstein with pigeons and Michel’s demonstration of childhood impatience. In sum, all vertebrates tend to devalue delayed rewards.
The second chapter aims to highlight differences between incentives and commitments to change. The author indicates that in the laboratory of economics, carrots and sticks are the instruments of change. Simply stated, rewards and punishments shape behavior. Ayres highlights work by Bar-On regarding the use of tangible and intangible rewards to curb the practice of leaving dog excrement in a neighborhood in Tel-Aviv. Dr. Bar-On’s findings illustrated the power of carrots in remedying a public health hazard. The author further details the use of “dollars for scholars,” rewarding students for academic achievement. Ayres is quick to note, however, that poorly calculated incentives may result in catastrophe. Care must be taken to assure unintended consequences are curtailed. The author also provides recent examples of the benefits of Antabuse (an antidrinking medication) and allí (an antiobesity medication); the immediate negative effects of these tools act as strong behavior modifiers for those wishing to stop drinking or reduce their intake of fatty foods. Ayres also provides a brief typology of carrots and sticks across three economic contract styles: commitments (disable choice), incentives (guide choice), and anti-incentives (signal choice). The appropriate use of each is dependent on the goals of the individual or business.
The third chapter of the text, “Losses Loom Large,” grapples with a common goal: weight loss. Ayres indicates that psychologist Robert W. Jeffery’s aimed to determine the necessary size of a carrot or stick needed to evoke weight change in a group of overweight middle-aged men in England. Participants could self-select into a US$30 or US$300 contract. Those entering the smaller contract forked over US$30 of their hard-earned wages and were capable of receiving US$2 each week if they met the weight loss requirement. Those using the US$300 contract were to receive US$20 of their payback at each weigh-in so long as they met the weekly goal. The experiment illustrated that those men who opted for the US$300 contract were more likely to lose weight (and, in fact, more weight than their US$30 counterparts). Caution should be exercised, however, when setting the size of the stick. Like Goldilocks, the consequence must be “just right” to illicit a positive, sustainable response. Otherwise, when stakes are too high or too low—participants may disregard the commitment or not enter at all. The remainder of the chapter details the increased efficacy of the use of both carrots and sticks. Commitments are more likely to stand the test of time when supported with both rewards and consequences.
Ayres notes the use of anticharitable contributions as an even more efficacious incentive for students in Chapter 4, “That Nagging Feeling.” This motivation can help individuals truly “put their money where their mouth is.” Students could opt into the commitments by writing a check to an organization they actively opposed which would be mailed by a partner entrusted with the letter containing the check, should they fail to meet the deadline for assignment submission. This method often proves so powerful that it is one of the options available to users of the stickK website (http://www.stickK.com) that Ayres and his colleagues have created to help individuals stick to their goals. This may be a very useful website for clinical social workers to suggest to their clients who may be having trouble in meeting their own goals. An additional portion of this chapter is dedicated to conformity. Ayres illustrates the power of conforming to the norm for individuals with several examples. One of the most salient was an example from Arizona’s Petrified Forest National Park. The author indicates that the park suffered dramatic losses when visitors would steal petrified wood pieces from the forest each year. A simple experiment that varied the wording and physical location of signs warning against theft showed that using signs actually normalized the theft and increased rates of loss. The parks’ posters were increasing the pilfering!
Ayres further develops the idea surrounding commitment contracts when speaking of “Maintenance and Mindfulness,” two concepts many clinical social workers are familiar with. As clinicians, we often struggle to assure long-term sustainability is in place for our clients and their respective systems upon termination. Our culture is moving toward a “quick fix” mentality with aspirations to obtain dramatic results overnight. A flexible commitment may help some individuals make the right choices for obtaining long-term goals. Reflecting on the use of norms to increase adherence to commitments may also prove helpful. If individuals know that they are more or less compliant or successful than others, this may offer the necessary “push” toward long-term sustainability. We often feel this way toward the end of a race when the crowd cheers us on, yelling “only one mile to go!” Ayres further indicates that increased confidence will lead to decreased reliance of contracts. In sum, “choosing the right goal, with the right degree of difficulty as well as flexibility” are necessary elements in effective commitment contracts.
The following chapter shifts the focus from the individual engaging in the commitment contract to those outside. For instance, several large employers are now offering incentives for when employees meet certain National Institutes of Health wellness guidelines. These employees are able to have their insurance deductibles greatly reduced by not smoking, having reduced body mass indexes, and lowering their cholesterol. This powerful carrot not only modifies employee behavior but increases their health as well. Further, these incentives may also improve productivity for the employer.
Chapter 7, “Antonio’s Problems,” highlights the plight of individuals who suffer from cognitive stressors like naivety. I have knowingly entered into a contract that I felt I would never violate—so what is the harm? Our clients, and all people, feel there is no risk agreeing to lofty interest rates with credit card companies, as they will never miss a payment. Further, we may succeed in reducing our time watching TV or eating high caloric meals to only increase our time spent shopping or smoking. Ayres notes we shift our attribution of our problems to others and replace our habits and relapse with a different vice. The author details the multiple burdens that plagued Benjamin Franklin in his efforts toward obtaining moral perfection. Ayres indicates that Franklin only found success when dedicating strict attention to one offense at a time—a sort of “divide and conquer” strategy. This approach is similar to how social workers develop smaller, short-term goals that are aimed at larger, overarching treatment goals.
The final chapter of the text details the development of the stickK website. The author and his colleagues, Dean Karlan and Barry Nalebuff, created a virtual commitment store that allows individuals and businesses the opportunity to select any of the prespecified contracts or to create their own. To assure adherence, the subscriber establishes a referee. The individual can self-referee or may have a friend, family member, or unknown third party serve as their referee. The individual is also able to select their carrot or stick to assure the contract is upheld. Ayres acknowledges the limitations of self-refereeing, but the reported results prove promising.
Ayres uses a variety of empirical studies throughout the text to support the behavioral economic foundations of commitment contracts and the efficacy of the stickK website. Social workers of various backgrounds will find this book a delightful, yet educating look at the use of rewards and consequences to attain positive, long-term goals. By combining carrots and sticks, we are able to shape both ourselves and others in practice.