Overcoming Present Bias and Aligning Incentives for Long-Term Decision Making

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People often underestimate the influence of present bias on their decisions, assuming they can make the best choices for the future. However, it is essential to understand how present bias affects decision-making. To counter this bias, individuals should align cost benefits with long-term goals by restructuring their incentive system to prioritize long-term benefits over immediate gratification.

Ever want to change something that really matters to you, but struggle to make it stick, let alone wonder how to ever get started? You’re not alone. There is so much misinformation in the world of behavior change, which is why I wanted to sit down with Katy Milkman to see if we could all get closer to the truth. And, find out, once and for all, what really works, and what’s just distraction.

Katy is an award-winning behavioral scientist and a professor at The Wharton School of the University of Pennsylvania. She hosts Charles Schwab’s popular behavioral economics podcast Choiceology, and is the co-founder and co-director of The Behavior Change for Good Initiative, a research center with the mission of advancing the science of lasting behavior change whose work is being chronicled by Freakonomics Radio. She has worked with or advised dozens of organizations on how to spur positive change, including Google, the U.S. Department of Defense, the American Red Cross, 24 Hour Fitness, Walmart and Morningstar. Her research is regularly featured in major media outlets such as The New York Times, the Wall Street Journal, and NPR. She is the bestselling author of How to Change: The Science of Getting from Where You Are to Where You Want to Be.

You can find Katy at: Website | Choiceology podcast

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You’ll also love the conversations we had with Dan Ariely about the irrational ways we behave and how to see more clearly what’s really going on.

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