Synopsis of talk at TIE Entrepreneurial Summit 2011

Part 1 covered the power of incentives, neuroeconomics and how Gallup developed method to measure emotional connect between customers and organizations. There was explanation on how a feeling of unfairness can trigger strong reactions with a variety of examples. Then the ultimatum game was used to show how people respond to situations emotionally rather than rationally. The effect of framing and how it can affect responses was explained. How loss aversion affects important decisions was explained with some examples.

Click here to read part 1

Part 2 starts explaining that human beings without exceptions are highly biased. First optimism bias was explained followed by reference or anchoring effect and relative positioning bias. The tendency of linking price to quality was explained and comparison between intrinsic and extrinsic motivations was made. Finally there is explanation on how brain research supports the need for leaders to set examples for others to follow.

Click here to read part 2

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