Wednesday, February 15, 2006
Posting Bonds, Part 2 -- Exercise
Over at Marginal Revolution, Tyler Cowen wonders why more people don't post bonds (see below) with family or friends in order to incentivize themselves to exercise. He offers four hypotheses for why this doesn't work (and thus why it isn't done) -- friends and family make poor enforcers of this type of thing, money given to a spouse is not really much of a loss to you, you really don't want to exercise, you don't want to be obliged to exercise (because this will likely lead you to avoid thinking about exercise altogether). He likes the last hypothesis, and I agree.
More generally, I wonder why we try and modify our behavior by raising prices rather than benefits. The idea behind posting a bond is to raise the price of the activity that you want to avoid (in this case sitting on your butt). While that uses fine economic intuition, I wonder why not try and raise the benefits of what you actually want to do (e.g. exercise) first.
Personally, I try and make exercise a social engagement. When I have been able to coordinate a regular exercise schedule with a friend, I exercise. When I try and exercise on my own, I fail miserably. By coordinating with a friend, I raise the benefit of the activity because we get to hang out, chat, and (some of the time) alleviate the pain and boredom with stimulating conversation. Further, I want to show up because I don't want to let my friend down.
So here's some unsolicited advice, when you are trying to change behavior think about how the behavior can be modified by affecting both the benefits and the costs. If you can achieve the desired outcome by making the desired activity more desirable (as opposed to making the undesired activity more costly), do it.
More generally, I wonder why we try and modify our behavior by raising prices rather than benefits. The idea behind posting a bond is to raise the price of the activity that you want to avoid (in this case sitting on your butt). While that uses fine economic intuition, I wonder why not try and raise the benefits of what you actually want to do (e.g. exercise) first.
Personally, I try and make exercise a social engagement. When I have been able to coordinate a regular exercise schedule with a friend, I exercise. When I try and exercise on my own, I fail miserably. By coordinating with a friend, I raise the benefit of the activity because we get to hang out, chat, and (some of the time) alleviate the pain and boredom with stimulating conversation. Further, I want to show up because I don't want to let my friend down.
So here's some unsolicited advice, when you are trying to change behavior think about how the behavior can be modified by affecting both the benefits and the costs. If you can achieve the desired outcome by making the desired activity more desirable (as opposed to making the undesired activity more costly), do it.
// posted by BW @ 2:21 PM 
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