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Tea pluckers in Darjeeling, 2004 (Source: Wikimedia Commons)

Economic Initiatives Can Lead to Unexpected Behaviours... at First

Idea posted: December 2015
  • Finance
  • Learning & Behaviour

Employee behaviour sometimes contradicts standard economic models. A study of a contract change in India, for example, led to greater output when the models called for less output. As the study reveals, however, the conflicting behaviour was only temporary; over time, employee behaviour in this case complied with the models. The study offers a warning to use longer-term data to measure the impact of economic initiatives or a policy change. 

Idea #568
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