Idea #394
How Reference Points Motivate Us
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How Reference Points Motivate Us
KEY CONCEPT
Reference-dependent theories state that individuals evaluate outcomes as gains or losses, depending on a neutral reference point. Making 19 sales in a month is a loss when the goal — the reference point — was 20 sales a month. Data from 10 million marathon finishes provides a field test that confirms the behavioural expectations and implications of these theories, shedding a light on how milestone goals can push individuals to higher performance.
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Idea conceived
December 1, 2013Idea posted
Jun 2014
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