Three cases from The Heart of Innovation, picked to demonstrate the ideas of Deliberate Innovation.
This is a companion discussion topic for the original entry at https://commoncog.com/cases-from-heart-of-innovation
This is a companion discussion topic for the original entry at https://commoncog.com/cases-from-heart-of-innovation
When I asked Furst about this example, he said that the general principle they used is to “find what people are already doing, and help them do that more .”
This reminds me of Hal Varian’s paper on whether you should have agents provide carrots or sticks to other agents.
principal is better off if the cost of the action he wishes to induce is lowered by a dollar than if the cost of the alternative action is increased by a dollar. In the terms introduce above, the carrot is better than the stick. Making the best action more attractive aids the principal in two ways: it makes the participation constraint less binding as well as making the incentive constraint less binding…
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