Tag Archives: Psychology

Money is just linear

If you can spare 10 minutes and 48 seconds of your time, watch the video above, it’s the best I’ve seen so far on this topic. For those who only have time to read the few lines in here, a really short summary is this:

For tasks requiring mechanical skill only the equation the bigger the reward (=pay), the better the performance holds true.

For tasks requiring even only a little bit of cognitive skill, this equation is not only rejected, it is actually inverse: the larger the reward, the poorer the performance!

As human beings, we are not predominantly driven by rewards, we are not linear. This is ok, we all knew already that those linear rewards work only so much. But that these rewards actually decrease our motivation to perform? That’s pretty big. Isn’t it exactly this behavior that inspired Steve Jobs to create the Mac? And that led so many other people in our world do the most beautiful things? It is. It is exactly this behavior what separates us from all other God’s creatures and I am not sure the saying “money rules the world” is correct. After all, money is just linear.

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