Mixed Signals: How Incentives Really Work

Mixed Signals is an informative and entertaining account of how actions send signals that shape behaviors and how to design better incentives for better results in our life, our work, and our world.

Incentives send powerful signals that aim to influence behavior. But often there is a conflict between what we say and what we do in response to these incentives. The result: mixed signals.Consider the CEO who urges teamwork but designs incentives for individual success, who invites innovation but punishes failure, who emphasizes quality but pays for quantity. Employing real-world scenarios just like this to illustrate this everyday phenomenon, behavioral economist Uri Gneezy explains why incentives often fail and demonstrates how the right incentives can change behavior by aligning with signals for better results.

Drawing on behavioral economics, game theory, psychology, and fieldwork, Gneezy outlines how to be incentive smart, designing rewards that are simple and effective. He highlights how the right combination of economic and psychological incentives can encourage people to drive more fuel-efficient cars, be more innovative at work, and even get to the gym. "Incentives send a signal," Gneezy writes, "and your objective is to make sure this signal is aligned with your goals."

"Uri Gneezy combines important academic and practical insights into how incentives work." —Alvin E. Roth, Nobel Prize-winner in Economic Sciences

"Packed with great science and stories, Mixed Signals will teach you everything you need to know about the power and pitfalls of offering rewards." —National bestselling author Katy Milkman