A session led by Nick Chater, Warwick business school
Unwritten rules – virtual bargaining, culture is hidden.
Behavioural hiring –
The psychology of incentives –
Unwritten rules – almost everything we do, we do together. actions socially are collective, when someone is out of kilter it is easily noticeable.
organisations work well when people coordinate and cooperate. the key to success is coordination, doing our specific roles thus supporting eachother. all communications or interactions between is a barganing activity. when we know the task and the rules we need to follow we tend to get success. when we are not clear or misunderstand the rules, then often fail results.
An interesting description of the difference between apes & humans, and how apes do not coordinate together, indeed even young children have better coordination and collaborative cooperation.
behavioural hiring –
org needs teams, we need people that can virtual barganing and cooperate together. working out what the cultural fit is, is important.
different interviews in a fin service org the corralation between interviews was 0.05 ! almost random!
psychology of incentives
teams or human interactions work well, when we know what the rulkes are.
the first rule of incentives is to folow a rule that people would set themselves!
what people feel is “fair” is highly flexible.
Fairness is the outcome of “fair bargain”
look at “three person ultimatum game” for how hidden rules work. (Guth)