The 90/10 rule of motivations
The 90/10 rule of motivations
by David Zetland
Since 2009, I have talked about a 20/80 rule of motivations, e.g., “My rule of thumb is that about 20 percent of people conserve [water] because it’s the right thing to do, and 80 percent conserve because it’s expensive NOT to [because prices are high].”
My point is that far more people (80%) are motivated by price (extrinsic incentives) than doing the right thing (intrinsic incentives).
This rule can apply to many areas where personal action has collective consequences, e.g., eating meat, flying, littering, cheating, etc.. (Read my The Little Book of The Commons for more.
The trouble is that my 80/20 rule is easy to confuse with other “80/20 rules,” such as 80% of profits (or problems) come from 20% of products or customers.
So I am renaming mine the 90/10 rule, for two reasons:
- Less confusion (other 90/10 rules are not common).
- 90/10 has more empirical support than 80/20.
Let me explain the second point:
In my research on the provision of public goods (this or this) I used games to understand people’s behavior.
In these games, around 10 percent of people are cooperators (helping others, unconditionally), 10 percent are defectors (helping themselves, unconditionally), and 80 percent are reciprocators (help others or themselves, depending on what others do). In this article [pdf], for example, 4% and 12% of students behaved as cooperators and free-riders, respectively.
So the share of cooperators is “small” (4 is around 10 percent, right?), which means that they do not dominate, but neither do free-riders.
So the question is how to motivate the reciprocators, and whether they will be (mis)led by cooperators or free-riders (both are possible), towards good or bad group outcomes, respectively.
In my opinion, reciprocators will follow the lead of cooperators if “social mechanisms” support cooperation and punish defection. Such mechanisms (or “institutions”) are composed of informal norms and formal rules, and they are the key to a group’s survival, prosperity, and perhaps downfall.
Are rules necessary for cooperation? No. We share in social situations; we cooperate against common dangers.
Do rules hinder freedom or block innovation? No. Rules help people with different tastes and goals collaborate, by setting expectations in some areas while allowing exploration, innovation and diversification elsewhere.
Are rules elitist? No. Rules assist the weak against the rich and powerful who use their independence to dominate others.
My one-handed conclusion is that rules are useful for getting along in a 90/10 world.
Fascinating stuff, I do believe his name is David rather than Davis.
Idriss:
We fixed the keyboard and moved “s” further away from “d” to avoid such mistakes.
Lol 🙂
David:
Thank you for stopping by. Your 90/10 rule typically applies in manufacturing also.
I found in times of a lack of capacity, I can short the main runners to achieve a bit more capacity for the balance of production which are less demand. Reason? There is typically slack time in planning or mandates by management. Do you need to run this product constantly to build to an inventory of 4 weeks? Or can you short it a small amount to balance inventory and achieve an inventory of less demand items?
It worked for dialysates, electronics, and machine tool domestically and globally.
Idriss:
And thank you for letting me know too! Infallible, I am not.
That was the funniest response to my pedantry in quite some time.
Idriss:
I try not to take myself too seriously. It wears you down. I appreciate you pointing it out to me. David even laughed at my comment. A story.
I was based in Cuba with 2nd Bn. 8th Marines in 70. I was running my own squad as a Lance Corporal and they promoted me to Corporal. I reported to the Master Sergeant. I got in a discussion with him and realized an oh-crap moment. I had went to far. I shut up and listened to his blistering reply. He was the one who got me promoted. It was an oh-crap moment.
Am I well educated, Yep, everything but finishing a doctorate. Does it matter? It did when they paid me. other than that, no. I appreciate your reading us and intervening.