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#609 - Uri Gneezy - How To Understand Psychological Incentives

Modern Wisdom

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Incentives and Negotiation: A Psychological Perspective

This chapter delves into the psychological incentives influencing consumer behavior, particularly in the context of hybrid car purchases like the Toyota Prius. It examines the complexities of designing incentives tailored to various cultural backgrounds and buyer demographics, illustrating how poorly structured incentives can produce unintended consequences. Additionally, the chapter highlights innovative negotiation tactics and the importance of understanding preferences to enhance negotiation outcomes.

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