How different interaction modes fundamentally change behavior and motivation
Core Idea: Social norms and market norms represent two distinct mental frameworks that dramatically change how people behave, with important implications for incentive design and community building.
Key Elements
-
Fundamental Differences:
- Mental Mode: Different parts of the brain activate for social vs. market interactions
- Relationship Focus: Long-term relationships vs. transactional exchanges
- Compensation Expectations: Reciprocity and goodwill vs. explicit payment
- Time Horizon: Social norms consider past and future; market norms focus on immediate transaction
-
Research Findings:
- Introducing even small payments can shift from social to market norms
- Once shifted to market norms, reverting to social norms is difficult
- Dan Ariely's experiments showed people would:
- Perform difficult tasks for free in social contexts
- Refuse to do the same tasks for small payments (felt insulting)
- Complete tasks for market-appropriate compensation
-
The Free Chocolate Effect:
- When Lindt truffles were priced at 1ยข, demand followed economic models
- When price went to free, people took fewer chocolates, not more
- Free pricing activated social norms ("don't be greedy") rather than market value maximization
-
Design Implications:
- Choose deliberately which norm to activate in your system
- Don't mix approaches without careful consideration
- Small payments can destroy social motivation
- Free doesn't always lead to maximum consumption
Additional Connections
- Broader Context: Behavioral Economics (field examining psychology in economic decisions)
- Applications: Incentive System Design (creating effective motivation systems)
- See Also: Intrinsic vs Extrinsic Motivation (related motivational distinction)
References
- Yu-kai Chou, Actionable Gamification
- Dan Ariely, Predictably Irrational
- Ariely's experiments on social vs. market norms
#behavioral-economics #psychology #motivation #community-design
Connections:
Sources: