Reward vs punishment: How humans respond to social incentives

'Sin tax', fines, loyalty points and commissions are a few examples of how desired behaviour can be driven through social incentives.

One of the basic components of a functional, cooperative society is a code of law, where the laws are usually enforced by some kind of incentive.

Social incentives can either be positive (rewards) or negative (punishments); and a society must decide which combination to use to achieve the greatest efficiency, or the highest level of cooperation at the lowest cost.

CapeTalk and 702 presenter Redi Tlhabi explores whether rewards or punishment are most effective in creating a cooperative society in South Africa.

Professor Chris Callaghan, Associate Professor in the School of Economic and Business Sciences (SEBS) at Wits University, says that it is always better to try and encourage good behaviour than punitive measures.

Behavioural economics literature shows that it is increasingly complex to answer questions about social incentives and group/individual decision making processes. It is difficult to generalise because we are all diffrent.

Professor Chris Callaghan, Associate Professor at SEBS

Callaghan says that values are the driving force behind the way individuals and groups respond to social incentives.

Listen to the full conversation from The Redi Tlhabi Show:


Read More
Metrorail destruptions are taxing on business - Cape Chamber of Commerce

Metrorail destruptions are taxing on business - Cape Chamber of Commerce

President of Cape Chamber of Commerce and Industry, Janine Myburgh says the loss equates to millions of Rands.

Scopa wants Steinhoff execs to appear before Parliament in the new year

Scopa wants Steinhoff execs to appear before Parliament in the new year

If Steinhoff executive refuse to appear before the committee, Godi says they will be subpoenaed through Parliament's legal team.

No-hassle Flexipump may be answer to farmers' water irrigation woes

No-hassle Flexipump may be answer to farmers' water irrigation woes

Agricultural water restrictions kick-in from January and Flexipump pumps water from a water source like a river to irrigate crops.

Rising tennis star Khololwam Montsi is determined to make SA proud

Rising tennis star Khololwam Montsi is determined to make SA proud

Speaking to CapeTalk's John Maytham, Montsi says he is currently focusing on going pro and making his country proud of him.

Tax on sugar: Will it make you eat less of it?

Tax on sugar: Will it make you eat less of it?

Stephen asks dietician, Jane Badham if tax on sugar will have an impact on people eating less of it

Will rise in cigarette tax stop you from smoking?

Will rise in cigarette tax stop you from smoking?

Stephen looks at the World Health Organisation's proposal to increase tobacco taxes and it's impact (or not) on smoking

Popular articles
South Africans Doing Great Things |  Nkosinathi Nkomo

South Africans Doing Great Things | Nkosinathi Nkomo

Wasanga speaks to Co-founder of AquaRenu, Nkosinathi Nkomo about turning a problem into an opportunity.

Dr Mbuyiseni Ndlozi opens up about his thesis

Dr Mbuyiseni Ndlozi opens up about his thesis

Ndlozi explains the significance of the the first chapter of his thesis: 'Trauma in the archives'.

German prosecutors probing Steinhoff CEO Markus Jooste (for accounting fraud)

German prosecutors probing Steinhoff CEO Markus Jooste (for accounting fraud)

The Money Show’s Bruce Whitfield interviews Steinhoff International Chairperson Christo Wiese.

Is it normal to have a curved penis? Dr Shingai explains

Is it normal to have a curved penis? Dr Shingai explains

Urologist Dr Shingai Mutambirwa says penile curvature is only a concern if it impedes a man's ability to have penetrative sex.

Who is Advocate Tembeka Ngcukaitobi?

Who is Advocate Tembeka Ngcukaitobi?

The EFF lawyer stole the show during the state capture report court battle.

Meet Shoprite’s Christo Wiese, ruler of retail (and 3rd richest African)

Meet Shoprite’s Christo Wiese, ruler of retail (and 3rd richest African)

Bruce Whitfield interviews the remarkable Wiese (net worth R100 billion!) about how it all began and where it’s going.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...

Blesserfinder: Matching you with a sugar daddy near you

Blesserfinder: Matching you with a sugar daddy near you

Is social trend Blesserfinder, where girls are allegedly matching up with rich 'benefactors' in exchange for sex, a real thing?