The Perils of Charging Late Fees for Daycare Parents

Incentives can be tricky, as they don't always produce the desired results. This was demonstrated by a study conducted at a small Israeli daycare center. The center implemented a $3 fine for parents who arrived late to pick up their children. Surprisingly, instead of motivating parents to be on time, the fine caused them to be even later. The story highlights the importance of understanding the complexities of incentives and their potential impact on behavior.